IRS Gives Extra Time To Resolve Liabilities Due To Pandemic

The IRS on Monday announced a collections initiative to provide relief to those who owe taxes but are struggling because of the pandemic, including extra time to resolve liabilities and loosened documentation requirements for installment agreements.

People or businesses who are entitled to short-term payment plans can have up to 180 days to pay their taxes instead of the original 120-day period, the Internal Revenue Service said in a statement announcing changes to its collection procedures to offer relief in light of the coronavirus pandemic.

The initiative also includes increased flexibility for people or businesses that temporarily can't satisfy their obligations under offers in compromise, and procedures that allow certain taxpayers who owe less than $250,000 in tax to set up alternative payment plans without furnishing a financial statement, the IRS said.

--Editing by Vincent Sherry. 

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