In addition to filing delays and a one-time stimulus payment, the IRS is implementing many changes in response to the coronavirus pandemic. Here are some of the major topics that could affect you and your family.
Early distribution penalty waived
The 10% early distribution penalty on up to $100,000 of retirement withdrawals for coronavirus-related reasons is waived during 2020. New provisions allow tax liabilities on these distributions to be paid over a three-year period. The new rules also allow individuals to return these distributions to the retirement account over a three-year period and not be subject to annual contribution limits.
Action: This could be a great way to handle emergency payments until you receive a stimulus check, unemployment payments, or a pending small business loan.
Required Minimum Distributions (RMDs) waived for 2020
Required minimum distributions (RMDs) in the year 2020 for various retirement plans is suspended. The corresponding 50% penalty associated with not taking an RMD is also suspended in 2020.
Action: Taking out distributions when the market takes a tumble can hurt future retirement income for many years. This change allows you to wait to let the value in your retirement account rebound before you withdraw funds.
IRS Installment agreement suspension
The IRS announced suspension of payments of all amounts due from April 1 through July 15, 2020 and will not default any installment agreement during this period. Interest will continue to accrue on all installment agreements.
Action: Being on the bad side of the IRS in never fun. If you currently have an IRS installment agreement, look to take advantage of this delay.
The IRS will allow you until July 15, 2020 to provide additional requested information for any pending offers-in-compromise (OIC) and will not close out the OIC during this time without your consent. The IRS is also suspending any payments due under an OIC until July 15, 2020.
Enforcement Activities Suspended? Not so fast...
The filing and enforcement of liens and levies will generally be suspended. However, IRS Revenue Officers will continue to pursue high income non-filers and initiate other actions when warranted.
No new audits
The IRS will not initiate new audits during this time, but will act to protect the statute of limitations.
Much is happening during this unique time in our country's history. Rest assured, as changes are made you will be informed. In the meantime, please keep yourself and your family safe.
Last updated: 05/19/2022
This Site and the Mostad Cloud Services content are intended for customers of Mostad Cloud Services. You may not use this Site or any of the content for any purpose not related to your business with Mostad Cloud Services. You are specifically prohibited from: (a) downloading, copying, or re-transmitting any or all of the Site or the content without, or in violation of, a written license or agreement with Mostad Cloud Services; (b) using any data mining, robots or similar data gathering or extraction methods; (c) manipulating or otherwise displaying the Site or the content by using navigational technology, framing, or similar technology; and (d) using the Site or the content other than for its intended purpose. Such unauthorized use may also violate applicable laws including but without limitation to copyright and trademark laws, the laws of privacy and publicity, and applicable communications regulations and statutes.
You represent and warrant that you will comply with all applicable laws and regulations, including, without limitation, those relating to the Internet, data, e-mail, privacy, and the transmission of technical data exported from the United States or the country in which you reside.
You acknowledge and agree that all content and information on the Site is protected by proprietary rights and laws.
You agree not to modify, copy, distribute, transmit, display, perform, reproduce, publish, license, transfer, create derivate work from, sell or re-sell any content or information obtained from or through the Site.
The Site may contain links to other websites maintained by third-parties. These links are provided solely as a convenience and does not imply endorsement of, or association with, the party by your accountant, your tax professional, or Mostad Cloud Services or its affiliates
Mostad Cloud Services reserves the right to change or modify any of the terms and conditions contained in this Agreement at any time. You acknowledge and agree that it is your responsibility to review the Site and these Terms of Service from time to time. Your continued use of the Site after such modifications to this Agreement will constitute acknowledgment of the modified Terms of Service and agreement to abide and be bound by the modified Terms of Service.
Mostad Cloud Services shall have the right to immediately terminate or suspend, at its discretion, your access to all or part of the Site with or without notice for any reason.
You expressly agree that use of the Site is at your sole risk and discretion. The Site and all content and other information contained on the Site is provided on an "AS IS" and "AS AVAILABLE" basis without warranty of any kind, whether express or implied. Mostad Cloud Services makes no warranty that (I) the Site and content or information will be uninterrupted, timely, secure or error-free, (II) the results that may be obtained from use of this Site will be effective, accurate or reliable. The Site may include technical mistakes, inaccuracies or typographical errors. Mostad Cloud Services reserves the right to change the Site content and information at any time without notice.
In no event shall Mostad Cloud Services or its affiliates be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.
Certain jurisdictions prohibit the exclusion or limitation of liability for consequential or incidental damages, thus the above limitations may not apply to you.
At Mostad Cloud Services, we respect the intellectual property rights of others and expect our users to do the same. Our Terms prohibit users from violating someone else’s intellectual property rights, including copyright and trademark.
If you believe content that belongs to you is being used through our Services or Websites without your permission, we want to know about it. You can send notice of the alleged infringement to our designated agent:
If you do send us a notice, please note that we may forward your notice, including your contact information, to the user who posted or used the content that you are complaining about. If you're not sure whether content on one of our Websites or sent through our Service infringes your intellectual rights, then you may want to speak with legal counsel in your area before notifying us.
Finally, before sending us a notice you may want to reach out to the person or organization who posted or used the content you believe infringes your rights. You may be able to resolve the issue directly with that person or organization without contacting Mostad Cloud Services.
When reporting a claim of copyright infringement, please ensure your notice includes the following:
When reporting a claim of trademark infringement, please ensure your notice includes the following:
This agreement was last updated on April 20, 2020.
You can contact Mostad Cloud Services with any questions at
9655 Penn Ave S
Minneapolis, MN 55431
Call us at 800.888.5803