COVID-19 has made it more difficult for many individuals and businesses to pay their taxes. While many tax relief measures passed earlier this year have expired, there are still remedies that may help minimize liability and/or delay payment.

coins falling out of walletIRS:

  • Payment Options. If you cannot pay your taxes when due, several payment options are available including an Online Payment Agreement, Installment Agreement, and Offer in Compromise. In addition, you may qualify for penalty abatement.
  • Collections. Where the IRS has initiated collections, you may be able to get temporary relief from a specific collection action, such as a levy. Another option is Currently Not Collectible (CNC) status. CNC status is where the IRS agrees the taxpayer cannot both pay his or her taxes and basic living expenses. If your account is in CNC status, the IRS generally won’t try to collect, but will still assess interest and penalties and may keep and apply your tax refunds to the tax debt.
  • Private Collection Actions. If your account has been assigned to a private collection agency, you should work with them to establish a new payment arrangement or restructure an existing one based on your current situation.

NYS:

  • Audits and Collections. You should request audit extensions and/or relief from collection actions if necessary due to COVID or other financial hardship.
  • Payment Options. If you are unable to pay your tax bills in full, you may qualify for an Installment Payment Agreement (IPA) or Offer in Compromise.
  • Voluntary Disclosure. If you owe taxes but are not yet under investigation, voluntary disclosure may also be an option.

This is just a partial list of remedies when taxes are owed, and each has its own specific requirements. If you have a tax problem, consult a tax professional regarding the best way to resolve your specific tax issue.

For more help, download our free Tax Helpline App or contact us for a consultation.