The coronavirus arrived at a tough time for taxpayers, many of whom were already struggling to file returns and make payments prior to the pandemic. Now, concerns that taxpayers hoped to resolve months ago continue to loom large.
If there’s a silver lining to all this, it’s an unexpected break from IRS issues that would otherwise overwhelm already cash-strapped taxpayers. From pushing back deadlines to halting liens, the IRS has relaxed a variety of previously strict policies in hopes of cutting taxpayers some slack during a difficult time. Efforts to lighten the burden include the following:
An emergency declaration issued under the Robert T. Stafford Disaster Relief and Emergency Assistance Act shifted the standard tax deadline from April 15th to July 15th. While this declaration applies exclusively to federal taxes, returns and payments were also postponed at the state level. Illness, job status, and quarantine measures play no role in eligibility — all taxpayers with returns due between April 1st and July 15th qualify.
Suspension of Collection Activity
Good news if you previously risked IRS consequences for nonpayment: the IRS temporarily suspended collection efforts such as liens, levies, and wage garnishment. Collection activity will remain suspended throughout the duration of the filing deadline extension.
During this time, you’re also allowed to halt payments on installment agreements, although interest may continue to accrue. After July 15th, it may be possible to renegotiate the terms of such installments based on coronavirus-related changes in employment status. Don’t let complacency take over; once the new extension deadline has passed, you may find yourself once again at the mercy of the IRS.
No matter the nature of your IRS issues, you can count on the team at the Highland Tax Group to help you achieve the best possible resolution. Contact us at your earliest convenience to learn how we can help.