We hope all is well with you as we come to the end of this unusual summer.
In the spring, the IRS implemented the People’s First Initiative which offered some relief to taxpayers experiencing COVID-19 related hardships. Part of this Initiative was the extended filing due date of July 15th. Now that the July deadline has come and gone, the IRS is once again ramping up its activity and aggressively pursuing collection matters.
The People’s First Initiative did not allow for any forgiveness of tax debt. Any past due tax balances are still accruing interest and penalties. If you are delinquent on tax filings or payments, now is the time to get this resolved.
There are several options that we can pursue to help you manage your delinquent taxes. If your financial situation was negatively impacted by COVID, there may be relief available under an Offer-in-Compromise claiming inability to pay. It may also be possible to setup a payment plan or Installment Agreement with the IRS.
It is extremely important to promptly respond to any IRS or state tax notices. Ignoring notices only leads to bigger headaches and additional expenses down the road. By being proactive and working with our team, we can help you to minimize your tax debt and gain control of your financial situation. Please do not hesitate to reach out to us to discuss any questions or concerns you may have.
Jeffrey D. Cohen, Esq., C.P.A.