The IRS’s People First Initiative, currently scheduled to run through July 15, 2020, includes changes to the IRS’s tax return examination conduct:
The IRS’s temporary procedures to fax carryback forms provide an alternative to paper filing Forms 1139 and 1045 (quick refund claims). While quick refund claims may result in clients receiving refund checks more quickly, clients should be cognizant of how quick refund claims impact the assessment statute of limitations (SOL):
Rev. Proc. 2020-23 provides some welcome relief for partnerships subject to the centralized partnership audit regime (CPAR). In short, CPAR partnerships can file Forms 1065-X instead of an administrative adjustment request through Sept. 30, 2020. CPAR partnerships that are currently under IRS examination should know the following:
The IRS’s People First Initiative also includes a significant easing of collection activities including:
At the same time, some notable IRS collection activities that will continue include:
Several IRS telephone assistance lines, including the Automated Collection System (ACS), are not currently providing live telephone assistance at this time. Taxpayers do not need to contact the IRS to confirm a hold on collection on an account, while the People First Initiative is in effect. If a lien or levy is issued during this period, the taxpayer may contact the revenue officer, if assigned to the account, to request a levy release; if a revenue officer is not assigned, then taxpayers may consider contacting their Local Taxpayer Advocate for assistance.
Taxpayers who have not filed their returns before 2019 should strongly consider contacting a tax professional to discuss available options to file their delinquent returns. Taxpayers may still be able to claim available refunds, if any, for at least the last three years of tax returns.
For more information on this topic or to learn how Baker Tilly specialists can help, contact our team.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.