Q: Is there any interest relief for taxpayers who have balances due that arise during the disaster relief period for prior year returns? A: No. The IRS will not abate interest on balances due on liabilities for prior years. However, the IRS will consider waiving late payment penalties when the reason for the late payment is due to reasonable cause related to the disaster. Q: What, if any, relief is accorded to Installment agreement payments that become due during the disaster relief period? A. Installment agreement payments due during the disaster relief period are suspended. After the postponement period has ended, the installment agreement will be reinstated (without a fee). The taxpayer will be required to resume making payments in accordance with the terms of the installment agreement beginning the month that follows after the end of the postponement period.
