IRS institutes people first initiative

In its ongoing effort to help American taxpayers, the Internal Revenue Service (“IRS”) announced a program called the People First Initiative (“PFI”) to provide additional relief from a variety of matters ranging from easing payment guidelines to postponing compliance actions. The temporary relief offered by the PFI includes postponing Installment Agreements, Offer in Compromise payments, and stopping many collection and enforcement actions.

Installment Agreements

Payments under existing Installment Agreements due before July 15, are suspended and taxpayers who currently cannot comply with the terms on an Installment Agreement will not be penalized. The IRS will not hold taxpayers in default on any Installment Agreement for nonpayment during this period. However, interest will continue to accrue.

Offers in Compromise

Taxpayers will have the option to postpone, until July 15, (i) the time to respond to requests for additional information on pending OIC applications, (ii) the closure of pending OIC applications, and (iii) payments on any accepted OIC.

Other Collection and Enforcement Actions

A wide range of collection and enforcement actions are being suspended until July 15, including automated liens and levies, as well as passport certifications (preventing renewal or issuance of passports). The IRS generally will not commence new field office or correspondence examinations before July 15 and most field collection activities are suspended. Despite this, the IRS has reserved some leeway to continue to target high-income non-filers and take actions to preserve the statute of limitations for collections during this period.

Pursuant to the announcement, the IRS may expand or continue to delay enforcement of the PFI later in the year.

Please contact your Mazars professional for additional information.

Published on April 14, 2020

The information provided here is for general guidance only, and does not constitute the provision of tax advice, accounting services, investment advice, legal advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers.