Tax Payments Must Resume by July 15

    The Internal Revenue Service (IRS) is reminding Taxpayers who took part in tax payment relief provided due to the COVID-19 pandemic that those owed tax payments, which stopped on March 25, must now resume. The IRS is starting to reopen their offices, as many businesses are reopening, and it is necessary to restart these payments to avoid penalties and interest. There are a few details that Taxpayers must understand when going forward.

     Installment Agreements. For those who had paused payments, understand that while interest continued to accrue on these amounts, but the IRS never defaulted your agreement. Contact your financial institution to make sure they restart the direct debit payments if you had them stopped.

      Offer in Compromise. If the offer in question is still pending with the IRS, the Taxpayer should simply restart making their normal payments by July 15. The offer will be amended to involve the skipped payments if it’s accepted. If the offer was accepted and there was nonpayment due to COVID-19 hardship, then payments (including all skipped payments) should resume on July 15. No new accounts were given to Private Collection Agencies from April 1 to July 15. Taxpayers in this situations should continue their payments starting July 15. It’s not too late to contact a Qualified Tax Professional and find out what your options are.

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