Topic: People First Initiative – Installment Agreements
IRS People First Initiative includes relief for taxpayers with Installment Agreements
· On March 25, 2020, the IRS announced The People First Initiative to provide compliance relief to taxpayers experiencing COVID-19 related hardships, which includes relief for those with Installment Agreements.
· The IRS encourages taxpayers to continue making their payments during this time, but the IRS will not default Installment Agreements due to missing payments during the suspension period that began April 1, 2020 and currently ends July 15, 2020.
· The IRS is unable to halt debit payments from banks for Direct Debit Installment Agreements (also known as DDIAs) during the suspension period. Taxpayers with a DDIA who want to suspend payments should contact their bank directly. Banks are required to comply with customer requests to stop recurring payments within a specified timeframe. View the Office of Comptroller of Currency FAQ on Preauthorized Withdrawals for guidance needed to stop automatic payments by their bank or financial institution.
Note: The suspension period began April 1, 2020 and expires July 15, 2020. Taxpayers who choose to suspend DDIA payments during this time must alert their financial institution to resume their direct payments at least two weeks before their next payment is due to avoid defaulting of their agreement,
(IRS News Release – IRS.gov) (TTT 05/05/2020)