The IRS has stepped up to help people facing the challenges of COVID-19 with a number of measures, including easing payment guidelines and postponing compliance actions for an initial period of April 1 to July 15, 2020. This is in addition to the extension of the tax filing deadline to July 15, 2020.
An important note: Taxpayers have until July 15, 2020, to respond to the IRS to verify that they qualify for the Earned Income Tax Credit or to verify their income. If this applies to you, it is important to make a concerted effort to obtain and submit all requested information. If you are not able to do so, you’ll need to inform the IRS indicating the reason why. Until July 15, 2020, the IRS will not deny these credits for a failure to provide requested information.
Some of the other measures the IRS is poised to take include:
· Postponing certain payments related to Installment Agreements and Offers in Compromise. For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020, are suspended.
· Providing the option for taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct