If you’re a freelancer who has been impacted by COVID-19 and is feeling financially stressed by tax debts, recent changes by the Internal Revenue Service (IRS) may help you.
These changes fall under the Taxpayer Relief Initiative that the IRS rolled out this year. The initiative is designed to give taxpayers impacted by COVID-19 and who owe the IRS money some relief through a set of expanded tools for settling debts, including:
· Taxpayers who qualify for a short-term payment plan option may now have up to 180 days to resolve their tax liabilities instead of 120 days.
· The IRS is offering flexibility for some taxpayers who are temporarily unable to meet the payment terms of an accepted Offer in Compromise.
· The IRS will automatically add certain new tax balances to existing Installment Agreements, for individual and out of business taxpayers.
· To reduce burden, certain qualified individual taxpayers who owe less than $250,000 may set up Installment Agreements without providing a financial statement or substantiation if their monthly payment proposal is sufficient.
· Some individual taxpayers who only owe for the 2019 tax year and who owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal