Between a pandemic and an economic crisis, the average person has more than enough to worry about right now. The last thing we need is the stress of taxes.
Unfortunately, current financial woes make this already anxiety-inducing ordeal that much worse. As such, the IRS has taken significant steps to make this year’s taxes a bit easier to handle.
While taxpayers are grateful for the latest COVID-related solutions from the IRS, many are confused about how these adjustments work and who they benefit. In an effort to address these concerns, we’ve developed a three-part blog series. We hope this information will make you feel more confident in your tax situation as you continue to navigate life during a pandemic.
How Does the New COVID Relief Differ From People First Initiative?
For many people, COVID didn’t feel urgent until mid-March. At that time, much of the nation entered a period of lockdown, followed by significant economic distress. This understandably worried many taxpayers, but the IRS offered swift relief in the form of the People First Initiative. This policy largely involved postponed payments and deadlines for everything from standard return filing to offers in compromise. The IRS also put a hold on some collection and enforcement actions.
The latest tax relief efforts unfortunately do not go nearly as far as the People First Initiative. With these recent adjustments, the IRS seeks to balance the need for helping taxpayers in crisis with the “need to uphold the nation’s tax laws.” This means that, while collection actions may resume, a greater range of options will be available for dealing with tax debt and other concerns. We’ll look at these solutions in detail in the next two blog posts.
If you’re struggling to handle tax debt in the midst of the COVID-19 pandemic, look to the Highland Tax Group for assistance. We can help you navigate evolving IRS policies and find a solution that works for you. Contact us today to get started.