2020 threw a huge wrench into everything, including the IRS collections proceedings. With the tax deadline pushed until July 15th and a lot of the IRS closed under shelter at home orders due to COVID19, to the IRS being tasked with sending millions of Americans their stimulus checks, the IRS collections proceedings took a backseat.
If you owe back taxes you might just assume you got some breathing room. However, things are starting to pick back up and the IRS will soon be calling.
According to the Taxpayer Advocate, as of late June 2020, the IRS generated more than 20 million notices, yet none of these notices were mailed to anyone. It seems now that the IRS is once again starting to send threatening notices to taxpayers who owe back taxes.
In this article, we want to share a few things you can do to get out of tax trouble and settle your back tax debt.
IMPORTANT: Before taking any action, we highly recommend readers reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties and interest forgiven. Reach out to our firm today for a consultation. www.mytaxcoaching.com/relief
FILE BEFORE JULY 15th
Before we explore any tax relief options, you must first get into compliance. Being in compliance means being current on all your tax return filings, including your 2019 tax return.
If you missed the deadline, you must still file as soon as possible before you begin exploring tax relief options. If you have multiple years of unfiled tax returns, reach out to our firm for help today. Don’t put it off any longer.
PENALTIES AND INTEREST
Any time you don’t pay your taxes, the IRS first hits you with what is called penalties and interest. Under normal circumstances, these penalties start accruing from day 1 after the tax deadline. Because of COVID19, The IRS is thankfully providing additional time to respond before interest or penalties apply.
If your tax bill already has penalties, we might be able to help remove some of the penalties by negotiating with the IRS on your behalf.
OFFER IN COMPROMISE
You might have heard advertisements about settling with the IRS, or the IRS Fresh Start program. Not everyone qualifies for it, but if your income or business was radically affected by COVID19, there’s a good chance you can qualify now. This means the IRS will reduce your tax debt to a fraction of what you owe.
It’s important to hire a tax relief firm like ours to walk you through this process and properly represent you before the IRS. Talking to the IRS before talking to us would be like going to court without a lawyer. Let us be your mediator.
DON’T TALK TO THE IRS IF YOU OWE $10k OR MORE.
Even though things are tough right now, the IRS’s main job is still to collect the taxes it thinks you owe them. That by nature pits them against you. Often talking to the IRS can be a scary path and you risk the chance of saying something self-incriminating. Save yourself the trouble, time, and money by reaching out to our tax relief firm today. You wouldn’t go to court without a lawyer and you definitely don’t want to approach the IRS without expert representation, like us.
Carolyn D. Stipp, CPA
3200 Greenfield Rd. Suite 300
Dearborn, MI 48120
313-221-9883
www.mytaxcoaching.com/relief