In response to the dangers and financial hardships caused by Covid-19, the IRS instituted the “IRS People First Initiative.” It came about as a way to help their employees stay safe and limit contact with others, as well as a way to keep the people of the country safe. It is also meant to help people suffering financial hardship during these trying times. The Initiative is in place from April 1, 2020, through July 15, 2020.
July 15, 2020, is the date that the IRS decided that things should be up and running again, and the date that people should be back on their feet and able to continue on with life. Because of this, this deadline is used for the IRS People First Initiative, as well as for the new filing deadline for taxes, among other things. The truth is that while many states are opening, the struggles caused by Covid-19 are far from over. Many people are out of work, have lost jobs, and are struggling financially. This could mean paying the IRS on July 15, 2020, is going to be hard, so you may need to contact an IRS tax debt solutions attorney in Florida.
If you have additional questions, you need to speak with a tax planning attorney in Florida. We invite you to contact The Law Office of Mary King, P.L. We are tax planning attorneys in Florida who are laser-focused on tax strategies for individuals as well as small and mid-sized businesses. We provide services in all areas from debt settlement to planning. Call today at 941-906-7585, or fill out our contact form. We are here to help you.
1. Installment Agreements
Under the IRS People First Initiative, people can delay any payments they owe to the IRS through Installment Agreements that are due between April 1, 2020, and July 15, 2020. So, if you can’t make your payments, you are allowed to stop paying until after July 15, 2020. You can stop any direct deposits and not receive any penalties for doing so. The IRS will not stop these direct deposits, it is up to you to do this. However, and this is important, the interest still accrues. So, the interest on what you owe does not stop. It will be added to your bill. The benefit is just not making payments.
People are still allowed to enter into new Installment Agreements with the IRS during this time if they will have trouble paying their taxes.
2. Offer in Compromise
Some people may be in the middle of negotiating with the IRS for an Offer in Compromise and may have trouble providing information to them during this time. Part of the IRS People First Initiative is that they are extending the deadline to provide requested documentation to support an Offer in Compromise until July 15, 2020.
The IRS is also extending payments due on an Offer in Compromise until July 15, 2020. But as with the Installment Agreements, interest will still accrue. And all missed payments are due on that date as well.
Normally, anyone who makes an Offer in Compromise to the IRS has to be current on all tax filings. But people wishing to make an Offer in Compromise have until July 15, 2020, to file 2018 and 2019 taxes.
The IRS stopped placing automatic liens and levies as part of the IRS People First Initiative. Until July 15, 2020, they will not place liens on a taxpayer’s property for unpaid taxes and will not seize your property either. Your property and bank accounts are safe from them during this time. However, this ends on July 15, 2020. So, now is the time to connect with an IRS tax debt solutions attorney in Florida to protect your assets.
They also stopped liens and levies instituted by field officers. But this does not apply to everyone. They still will continue collection procedures against some high-income non-filers as well as continue with certain other collection activities.
The IRS also will not send delinquent tax filers debts to a private collection agency for handling until after July 15, 2020.
4. Tax Returns Not Filed and Earned Income Credit Verifications
Some may be late in filing their tax return from previous years. If you have not filed, it is a good idea to file them by July 15, 2020. For instance, the IRS owes refunds to many people who have not filed tax returns in the last few years. If you didn’t file taxes for 2016 and are owed a refund, you can file by July 15, 2020, and get that refund.
Then, there are people who have not filed and owe money. This is where the process can get more complicated. Because then you are dealing with back taxes owed as well as interest and penalties. You have to decide the best way to pay them and investigate what options are available to deal with the IRS. This is definitely the time to contact an IRS tax debt solutions attorney in Florida. They can assist you in dealing with the IRS so you get the best outcome possible.
If the IRS wants you to send in information to verify that you qualify for the Earned Income Credit, you have until July 15, 2020, to do so.
Generally, the IRS will let the State Department know when taxpayers owe more than $53,000 in back taxes, and the State Department will deny passports on that basis as well as revoke currently issued passports. Under the People First Initiative, the IRS will not send this information to the State Department. This means it is a good time to work with the IRS to clear up delinquent taxes owed so once July 15, 2020 hits, a plan is in place so you do not have any passport delays or revocations. This is an extremely important issue, and one best discussed with an IRS tax debt solutions attorney in Florida.
6. Audits and Appeals
There are some exceptions, but under the IRS People First Initiative, the IRS does not plan to begin any new field, office, or correspondence, examinations which are part of the normal audit process. They will not have any in-person meetings, but they will do what they can remotely and may have examinations in that format. The IRS also wants people to send in any requested information during this time.
The IRS is not holding in-person appeals conferences but may do so over the telephone or by video. The appeals department is continuing to work on appeals cases during this time. If you have a pending appeal, it is a good time to speak to an IRS tax debt solutions attorney in Florida.
It is important to note that the IRS will act to protect their interests if any statute of limitations is going to run out. So, while the IRS People First Initiative will help some, it will not stop them from acting to protect their interests if necessary. So you have to be proactive and protect your interests by contacting an IRS tax debt solutions attorney in Florida.
Get the Help of an Experienced Tax Planning Attorney in Florida
The Law Office of Mary King P.L. can help. We are an experienced tax planning law firm in Florida, and we offer complete services in all areas from tax implications of alimony to planning the most efficient tax strategy for individuals and businesses.
Call our IRS problem-solving services firm in Florida today to schedule an initial consultation. With years of experience, the Law Office of Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.