Tax Tip 2020-57 – People First Initiative Explanation from the IRS

Tax Tip 2020-57 was issued on May 14, 2020 to explain relief that will be provided on a variety of issues as part of the People First Initiative due to COVID-19.  Most importantly, the IRS has modified 2019 filing and payment deadline from April 15, 2020 to July 15, 2020.

The IRS is not expected to start new field, office, or correspondence audits during this historic time.  The agency will continue to distribute refund claims without in-person contact, where possible.   

The IRS may start new audits to preserve the statute of limitations when needed.  In-person meetings for current field and office audits are on hold.  Examiners, however, are working remotely when possible.  Taxpayers are expected to respond to all requests for any information during this time whenever possible.  Businesses and Corporations may begin previously scheduled audits if people and records are available.  The IRS may move forward with an audit in the best interest of all parties, understanding that COVID-19 developments may show activities. 

Taxpayers have until July 15, 2020 to respond to the IRS to verify income or that they qualify for the earned income tax credit. Taxpayers are to continue to submit all requested information. If they are not able to, the appropriate response is to contact the agency to explain why the information is not available.  The IRS will not deny credits for failure to provide information until July 15, 2020.

Appeals employees will continue to work appeals cases; however, in-person meetings are being replaced with phone or video conferences.  Taxpayers are to respond to information requests from their Independent Office of Appeals. 

The IRS is continuing protection of statutes of limitations. Taxpayers are encouraged to cooperate in extending statutes if statute expirations might be jeopardized during this period.  The IRS will issue Statutory Notices of Deficiency and will pursue similar actions to protect the interests of the government. SPS/GZ is a full-service ACA reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file ACA forms.  Let SPS/GZ be your trusted ACA tax form reporting provider.

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