IRS People First Initiative Richard Furlong, Jr. Senior - PDF document

10/19/2020 Communications & Liaison STAKEHOLDER LIAISON IRS People First Initiative Richard Furlong, Jr. Senior Stakeholder Liaison October 22, 2020 South Jersey Working Together Virtual Conference 1 1 “The IRS is taking extraordinary steps to help the people of our country” - IRS Commissioner Chuck Rettig People First Initiative October 13, 2020 Community College of Philadelphia CPA CPE Series 2 1

10/19/2020 The People First Initiative • Help people facing COVID-19 challenges • Relief to taxpayers on a variety of tax issues • Temporary April 1 through July 15, 2020 • No in-person contact 3 3 Installment Agreements (IA) • Payments may be suspended • No defaults on existing agreements • Interest continues to accrue 4 4 2

10/19/2020 Offer in Compromise (OIC) • Deadlines extended to provide information to support pending applications • Payments may be suspended • Non-default for delinquent return filers 5 5 Collection Activities • New levies and notices of federal tax lien will generally be suspended • Many nonfiler activities will continue 6 6 3

10/19/2020 Audits • Generally, no new audits started • Refund claims work continued • In-person meetings suspended 7 7 EITC and Wage Verification • Response time extended • Submit all requested information 8 8 4

10/19/2020 Nonfilers • Delinquent returns • Claim refunds from the last three years • Time for receiving refunds limited by statute • Refer to the “Make a Payment” page on IRS.Gov to learn about payment options. 9 9 Passport Certifications • New certifications suspended through July 15, 2020 • Certification prevents receiving or renewing passports • Existing certifications will remain in place. To request decertification, taxpayers may call the phone number listed on their CP 508C notice to resolve their seriously delinquent debt. 10 10 5

10/19/2020 Private Debt Collection • New delinquent accounts will not be forwarded to the private collection agencies (PCAs) during the suspension period. • PCA interaction with taxpayers is limited to inbound telephone calls and outbound calls when requested by voicemail or correspondence. 11 11 Independent Office of Appeals • Appeals continues to work cases • Telephone and videoconference • Respond to outstanding requests 12 12 6

10/19/2020 Statute of Limitations • Statutes of limitations to be protected • Jeopardized statutes • Notices of Deficiency and other actions • Statutes expiring beyond 2020 13 13 Practitioner Priority Service • Practitioner Priority Service (PPS) line open with extended wait times • IRS.gov • Use e-Services • Access Transcript Delivery System (TDS) 14 14 7

10/19/2020 Resources IRS.gov/coronavirus 15 15 Examination Business Resumption Plan COVID-19 16 8

10/19/2020 Exam Business Resumption Plan Main Elements of the People Postponed Examination First Initiative compliance activities April 1 – July 15, 2020 • Taxpayer relief Field, Office and Correspondence Audits • In-Person meetings • Unique situations • General requests for information • Updated electronic communication procedures 17 17 Exam Business Resumption Plan General IRS Resumption, Post • Phased-in approach July 15, 2020 • Digital transmissions • Digital Signatures 18 18 9

10/19/2020 Exam Business Resumption Plan Policy Examination Activities After Pre-COVID July 15, 2020 • Mailing physical documents • In person examinations Post – COVID • Virtual audits • Electronic transmissions 19 19 Exam Business Resumption Plan Office audits: • Initial contact letters for new examinations began July 16. Field Programs • Document exchange: In-person at IRS Taxpayer Assistance Center space Field visits: • Social distancing plan • Masks required 20 20 10

10/19/2020 Exam Business Resumption Plan Telework August 15 resumption Campus Programs • Automated Underreporter (AUR); • Business Underreporter (BUR); • SSA Combined Annual Wage Reporting (CAWR); • IRS CAWR; • Innocent Spouse; • Backup Withholding • Phone line open Aug. 24 21 21 Exam Business Resumption Plan Technology Other Endeavors • Virtual communications • WebEx • Taxpayer Digital Communications Public Safety • Plexiglass partitions 22 22 11

10/19/2020 Coronavirus Tax Relief 2019 Refund Interest 23 Coronavirus Tax Relief 2019 tax refund interest54 Eligibility: Nearly 14 million Payment amount individual taxpayers who filed The interest payments are an their 2019 federal income tax average of $18. returns on time and received a refund will also get an interest Interest is taxable income payment. This refund interest payment applies only to The 2019 refund interest individual income tax filers- payments are taxable, and businesses are not eligible. taxpayers must report the interest on their 2020 federal income tax return. The IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10. 24 24 12

10/19/2020 Coronavirus Tax Relief 2019 tax refund interest54 Refund interest provision COVID-19 disaster relief 25 25 Coronavirus Tax Relief 2019 tax refund interest5 More information IRS.gov Coronavirus Tax Relief: 2019 tax refund interest – Frequently Asked Questions 26 26 13

10/19/2020 Coronavirus Aid, Relief, & Economic Security (CARES) Act Enacted March 27, 2020 CARES Act - Section 2303 – Net Operating Loss (NOL) Carryback reinstated Rev Proc 2020-24 provides guidance to taxpayers with net operating losses that are carried back under the CARES Act.  Election to exclude section 965 inclusion years  Election to waive entire carryback with respect to an NOL arising in a taxable year beginning in 2018, 2019, or 2020.  FAQs about Carrybacks of NOLs for Taxpayers who have had Section 965 Inclusions. 27 27 Coronavirus Aid, Relief, & Economic Security (CARES) Act CARES Act - Section 2303 – Six-month extension of time for filing NOL forms Notice 2020-26, grants a six-month extension of time to file NOL forms with respect to the carryback of a net operating loss that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.  Forms 1139 & 1045 use to Claim Quick Refunds of the Credit for Prior Year Minimum Tax Liability of Corporations and Net Operating Loss Deductions 28 28 14

10/19/2020 Coronavirus Aid, Relief, & Economic Security (CARES) Act COVID-19 relief for partnerships with NOLs Revenue Procedure 2020-23, allows eligible partnerships to file an amended Form 1065 and furnish a corresponding Schedule K-1 to each of its partners in lieu of filing an Administrative Adjustment Requests (AARs). 29 29 Communications & Liaison STAKEHOLDER LIAISON Richard Furlong, Jr. Senior Stakeholder Liaison 267-941-6343 richard.g.furlong@irs.gov 30 30 15