Do I Have to Pay My IRS Installment Agreement During Covid-19?

Do I Have to Pay My IRS Installment Agreement During COVID-19?

As we navigate through the challenges of the COVID-19 pandemic, many individuals and businesses are facing financial hardships. This has led to concerns about meeting financial obligations, including IRS installment agreements. If find situation, wondering whether continue making payments IRS installment agreement COVID-19.

Understanding IRS Installment Agreements

Diving Impact of COVID-19 on IRS Installment Agreements, important clear understanding agreements entail. An IRS installment agreement is a payment plan that allows taxpayers to pay off their tax debt over time. This viable option individuals businesses unable pay tax bill full.

Impact of COVID-19 on IRS Installment Agreements

While the IRS has implemented various relief measures in response to the COVID-19 pandemic, it`s important to note that taxpayers are still required to fulfill their tax obligations, including installment agreement payments. Failure to make these payments can result in penalties and interest charges, and may even lead to the cancellation of the installment agreement.

Case Study: Impact COVID-19 IRS Installment Agreement

In a recent case study, a small business owner found themselves struggling to make payments on their IRS installment agreement due to the financial impact of the pandemic. Despite their best efforts, they were unable to meet their payment obligations. As a result, they incurred additional penalties and interest, further complicating their financial situation.

Options for Taxpayers Facing Financial Hardships

If you are experiencing financial hardship due to COVID-19 and are unable to make payments on your IRS installment agreement, it`s important to explore your options. The IRS offers various relief programs, such as the Offer in Compromise and Currently Not Collectible status, which may provide temporary relief from your tax obligations.

Seeking Professional Assistance

Dealing with tax matters can be complex, especially during times of financial distress. It`s advisable to seek the guidance of a qualified tax professional who can help you navigate the intricacies of IRS installment agreements and explore potential relief options.

While the COVID-19 pandemic has brought about unprecedented financial challenges, taxpayers are still required to fulfill their tax obligations, including payments on IRS installment agreements. However, there are options available for those facing financial hardships, and seeking professional assistance can provide valuable guidance and support during these challenging times.

Related Resources

Frequently Asked Legal Questions About IRS Installment Payments During COVID-19

QuestionAnswer
1. Can I stop making payments on my IRS installment agreement during COVID-19?Unfortunately, the IRS expects taxpayers to continue making payments on existing installment agreements. However, they may be willing to work with you on a case-by-case basis if you`re experiencing financial hardship due to the pandemic. It`s best reach discuss situation.
2. Will I incur penalties if I miss my IRS installment payment due to COVID-19?The IRS has temporarily suspended the accrual of penalties and interest on unpaid balances, including installment agreements, until July 15, 2020. However, important stay communication IRS unable make payments.
3. Can I request a temporary suspension of my IRS installment agreement due to COVID-19?Yes, the IRS may allow for a temporary delay or suspension of payments if you`re experiencing financial difficulties as a result of the pandemic. Contact soon possible discuss options.
4. What evidence do I need to provide to the IRS to support my request for deferred payments?You may need to provide documentation of your financial hardship, such as unemployment records, medical expenses, or other evidence of decreased income or increased expenses due to COVID-19.
5. Can the IRS cancel my installment agreement if I miss payments due to COVID-19?IRS stated won`t default agreements pandemic. However, it`s crucial to communicate with them and make arrangements for alternative payment schedules if necessary.
6. How I reach IRS discuss installment agreement COVID-19?You can contact the IRS directly by phone or mail to discuss your situation. Additionally, they have various online tools and resources available for taxpayers, including the ability to request a temporary delay or suspension of payments.
7. Will the IRS consider my COVID-19-related hardships when evaluating my installment agreement?Yes, the IRS has expressed willingness to consider hardships related to the pandemic when evaluating installment agreements. Be sure to provide any necessary documentation to support your request for relief.
8. What if I can`t afford to make any payments on my IRS installment agreement due to COVID-19?If unable make payments time, crucial reach IRS discuss situation. They may be able to offer alternative payment arrangements or temporarily suspend your payments.
9. Are there any resources or assistance programs available to help with IRS installment payments during COVID-19?Various assistance programs and resources are available for taxpayers facing financial hardship due to COVID-19. The IRS has implemented special procedures and relief measures, so it`s essential to explore all available options.
10. How can a tax attorney or legal professional assist with my IRS installment agreement during COVID-19?A tax attorney can provide valuable guidance and representation when dealing with the IRS, especially during challenging times like the COVID-19 pandemic. They can help navigate the complexities of tax law and negotiate on your behalf to achieve the best possible outcome.

Legal Contract: IRS Installment Agreement During COVID-19

As COVID-19 pandemic continues impact individuals businesses, uncertainty regarding Obligation to Pay IRS Installment Agreements. This legal contract aims to clarify the rights and responsibilities of the involved parties in relation to IRS installment agreements during the COVID-19 pandemic.

PARTIESDEFINITIONS

This contract is entered into between the Internal Revenue Service (IRS) and the taxpayer (hereinafter referred to as “Taxpayer”).

The IRS is a United States government agency responsible for the collection of taxes and enforcement of tax laws.

The Taxpayer individual entity entered installment agreement IRS payment tax liabilities.

COVID-19: The coronavirus disease 2019, as declared by the World Health Organization.

Installment Agreement: An agreement between the IRS and the Taxpayer for the payment of tax liabilities in multiple, periodic payments.

1. Obligation to Pay IRS Installment Agreement

During the COVID-19 pandemic, the Taxpayer is legally obligated to continue making payments as per the terms of the installment agreement with the IRS. The IRS will continue to enforce the terms of existing installment agreements and may take action for non-compliance.

However, the IRS recognizes the financial challenges posed by the pandemic and may consider requests for modifications or deferments on a case-by-case basis.

2. Legal Basis

Section 6159 of the Internal Revenue Code (IRC) provides the legal authority for the IRS to enter into installment agreements with taxpayers for the payment of tax liabilities. This legal obligation remains in effect during the COVID-19 pandemic unless otherwise modified or waived by the IRS.

3. Modification or Deferment Requests

If the Taxpayer is unable to meet the obligations of the installment agreement due to COVID-19-related financial hardships, they may submit a request to the IRS for modification or deferment of payments. Such requests will be evaluated based on the individual circumstances of the Taxpayer.

4. Conclusion

This legal contract reaffirms the obligation of the Taxpayer to pay the IRS installment agreement during the COVID-19 pandemic, while also acknowledging the authority of the IRS to consider modifications or deferments in cases of financial hardship.