There are currently approximately 226,000 entrepreneurs with outstanding coronavirus debt with the IRS. Since October 2022, they have had a payment plan in place to settle these debts incurred during the COVID-19 pandemic. The majority are committed to the payment terms, but at least 43,000 entrepreneurs have yet to pay anything.
State Minister Marnix van Rij (Tax) announced the figures on Thursday in a letter to the House of Representatives, the lower house of the Dutch parliament.
The number of entrepreneurs with Covid-19-related debt has fallen to 41,000 since October. These businessmen have either settled their debts or gone bankrupt. Over the past 10 months, total debt has decreased from €19.6 billion to €14.8 billion.
About 91 thousand entrepreneurs did not pay all the agreed upon installment amounts. Among this group, there are about 43,000 people who have not paid a single installment. According to Van Rij, these entrepreneurs did not respond to requests for payment, even after receiving targeted letters, campaigns, and media attention.
Since early July, the IRS has sent notices to 35,000 of these entrepreneurs to cancel their payment plans. They are now required to repay the debts as soon as possible. Other serious defaulters will also receive a letter from the IRS soon.
Since the beginning of the Covid-19 crisis in March 2020, nearly 400,000 entrepreneurs have received tax deferrals, with a total value of €47 billion.
