The IRS shut down for weeks, and for many with tax debt, it felt like the first time they could ignore the IRS and forget about that burden. But just because IRS officials were out of the office doesn’t mean you won’t be crossing paths with them again. Now that the government has reopened, you can expect the IRS to be back on the trail, trying to collect what you owe. If you took a break from addressing your tax debt, now is the time to get back into it. At Highland Tax Group, we know dealing with your tax debt is never easy, but here are a few things you can do to help you as the IRS reopens.
Collect Missing Forms
As you know, the IRS is known for its forms. You probably feel like the IRS has asked for about 56 forms, many of which contain the same information. Many taxpayers sit there pulling out their hair and screaming, “Why are you asking me this AGAIN?”
While the IRS was closed, you were likely still receiving automatic notifications about these forms. With the IRS reopened, you need to get caught up. If you’re struggling with these forms, reach out to Highland Tax Group, and we can make sure they’re in great shape for the IRS.
Finalize Your Financial Disclosure Statements
If you’re navigating an offer in compromise (OIC) or other payment plan, you will need to submit your financial disclosure statement. These statements can take a long time to organize, considering the level of detail included. Reviewing your income, expenses, assets, and liabilities is crucial for providing a sufficient and accurate financial disclosure.
Many taxpayers make mistakes on these documents, which can delay getting their payment plan in place and lead to more unwanted IRS correspondence. We know it can be time-consuming, but getting your financial disclosure statements done right the first time will save you time down the road.
Develop a Debt Resolution Strategy Without the IRS
When you are being bombarded with IRS correspondence, it can be hard to take a deep breath and look at your situation. The IRS will need a little time to ramp back up; you may be lucky and not be at the forefront of the IRS’s to-do list at first. While you are still responsible for payments, this delay gives you time to work with a qualified tax professional to develop a strategy to repay your debt without the added stress of the involvement of an IRS official.
Keep Making Payments on Your Tax Debt
While the IRS may be leaving you alone a little longer, that doesn’t mean interest and penalties are being pushed to the side. Interest and penalties will still apply, even when IRS staff are not actively processing your payments. As IRS operations get back to normal, any missed payments will be flagged immediately, and interest and penalties will be applied to your account balance. Continuing to be proactive with your payments will prevent your tax debt from increasing with unnecessary interest and fees.
It isn’t just penalties and interest on the line if you skip payments after the IRS has reopened. Your IRS payment plan came with strict repayment terms. A missed payment can threaten your payment plan altogether. Remember, your payment plan is a legally binding contract between you and the IRS; it isn’t contingent on the IRS operating at full speed.
Addressing a Payment Plan Cancellation
If you missed payments during the shutdown, you may receive a notice that violating your plan terms by missing a payment will cancel your payment plan. You’ve worked so hard to get a payment plan financially feasible for you; it would be a shame to lose it. With assistance from a qualified tax professional, you may be able to restore your plan or apply for a different payment plan option.
Highland Tax Group is Here for You
If you’re struggling to get back on track as the IRS reopens, the enrolled agents at Highland Tax Group can help. Our team is here to give you a map to resolve your IRS tax debt.