Make the Most Out of Tax Relief Options
As I write this, many of us are adjusting to a new “normal”: working from home, managing education for our kids, and venturing to essential places with masks and gloves. But just as we are adjusting, so are businesses both big and small, including the IRS. Because our new situation makes life uncertain, many people are worried about what’s going to happen next, and it’s for this reason that I want to break down just how COVID-19 affects your taxes.
New Opportunities due to the Pandemic
In response to the pandemic, the IRS is releasing several new tax amendments and relief opportunities, such as extending the tax filing date to July 15. Installment payments, lien or levy actions, audits, and passport holds are also suspended in most cases until that date, and requirements for payment plans and tax breaks are being loosened. Taxpayers who owe the IRS should take advantage of this open window now while they still can.
If you owe money to the IRS, now is the best time to act. You might be able to defer your IRS back taxes in full if you qualify for a hardship approval. If you’re experiencing a financial hardship and cannot pay your full debt to the IRS, then this may be your best option. The IRS may expedite the resolution of your tax case if you fall into one of these situations: if your expenses exceed your income, your work hours are reduced or you lose your job, or you’ve been required to leave the workplace due to COVID-19. If you’re experiencing any of these financial situations, you may qualify, but you must report the hardship you’re facing to the IRS immediately for consideration.
Don’t Fall for Scams
The next step is to speak with a licensed tax professional. Don’t take your case to any company claiming to relieve your tax situation overnight. Right now, a lot of scammers out there are preying on those who are scared and unfamiliar with the tax system. To ensure you don’t fall victim to these scams, ask your potential tax representative about their credentials and experience. If they’re claiming anything too good to be true, then chances are it is.
At Landmark Tax Group, our entire staff cares about our community, which is why if you need a review of your tax situation, it’s completely free. If you just received an IRS notice or tax letter, then we can review that for free as well.
During times like these, we need to be there for each other more than ever. Reach out to us today to get your IRS issue resolved so you can focus on the important things like your family and your health. You can call us anytime at (949) 260-4770 or email firstname.lastname@example.org.
~ Michael Raanan MBA, EA, Former IRS Agent