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  • Writer's pictureBrian Barto

New Changes in the IRS Collection Division!

The IRS is back up and running and they are continuing their efforts to help struggling taxpayers impacted by COVID-19 and natural disasters. Recently, they unveiled

which are intended to assist taxpayers facing financial challenges.

Highlights of these collection changes are:

  • To avoid taxpayer default on the existing installment agreement, the IRS will automatically add certain new tax balances to the agreement.

  • Short-term extensions of time to pay the tax balance in full have been extended to 180 days (six months). Prior to this change, taxpayers had only 120 days on a short-term extension.

  • Individuals who owe less than $250,000 can set up an installment agreement without having to provide financial statements and substantiation of expenses. For this to apply, the liability must be paid in full within the statute of limitations on collection.

  • Individual taxpayers who owe only for 2019 and who owe less than $250,000 may qualify for an installment agreement without the IRS filing a notice of federal tax lien.

  • Taxpayers with existing direct debit installment agreements who owe less than $50,000 can propose a lower monthly amount and change their payment due date online.

It is important to note, however, that the changes listed below apply only to cases that are not assigned to a Revenue Officer in Field Collection.

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