COVID-19 Relief Law - IRS Guidance May 2020
In an attempt to remain in stride with the Federal Government's efforts to provide COVID-19 Relief, the Internal Revenue Service ("IRS") has rapidly amended rules and issued new guidance relating to the tax code as well as their collections activity.
The IRS Collections Enforcement Branch issued Guidance relating to the designated tax period of relief from March 30, 2020 to July 15, 2020. The guidance issued to IRS collection enforcement personnel instructed the secession of collection activity unless:
- There is a risk of permanent loss to the government due to the expiration of a statute or other exigent circumstances; or
- Taxpayer has agreed to the action.
Further, while IRS installment agreements may be voluntarily suspended during this period, the tax liabilities will continue to incur interest as well as the late payment penalty of 0.25% to 0.5% monthly.
Taxpayers who fall into a sense of complacency run the risk of being ill prepared for the full force of the IRS upon the resumption of normal collection activities after this grace period expires.
To best prepare yourself for during this grace period please contact the tax attorneys at Fazzio Law, we are in your corner!
To see more about prior guidance, please read our prior posts:
(IRS General Guidance) https://www.fazziolaw.com/blog/covid-19-irs-guidance-april-2020.cfm;
(IRS Charitable Deduction Guidance) https://www.fazziolaw.com/blog/covid-19-relief-law-irs-guidance-charitable-deductions.cfm; &
(IRS Retirement and Student Loan Guidance) https://www.fazziolaw.com/blog/covid-19-relief-law-retirement-account-student-loan-relief.cfm.
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