As the economy continue its ups and downs, awareness of regulatory moves that relate to your individual tax situation can reduce anxiety and protect your wealth.
In March 2020, a declaration of a national state of emergency due to the COVID-19 pandemic was instituted to trigger relief measures to address the global viral challenge on a national basis. The Internal Revenue Service (IRS) became a player in the relief programs that followed, including pushing back the traditional April 15 tax return filing date and handling the processing and payment of stimulus checks to American taxpayers.
In March, the IRS also initiated the People First Initiative. In announcing the measure, IRS Commissioner Chuck Rettig noted, “The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes. We are temporarily adjusting our processes to help people and businesses during these uncertain times. We are facing this together, and we want to be part of the solution to improve the lives of all people in our country."
Within an initial window between April 1 and July 15, 2020, the actions of the Initiative are considerable, including:
- Payments for taxpayers on existing installment plans are temporarily suspended between April 1 and July 15. While interest can accrue on suspended payments, the IRS will not default Installment Agreements during this time frame.
- For taxpayers with pending Offers in Compromise (OIC), applicants have until July 15 to provide additional information to support their offer. As well, the IRS will currently not default an OIC due to unpaid 2018 taxes. Delinquent 2018 returns, plus the 2019 return, must be filed by the July 15 deadline. No pending OICs will be closed prior to July 15 unless requested by the taxpayer. Similar to those with IRS Installment Agreements, payments on OICs are suspended until July 15, although interest still applies.
- Individual who are required to, but have not filed income tax returns before 2019 are reminded of their obligation to do so. According to the IRS, more than one million households that have not filed returns are due refunds. The IRS suggests taxpayers to speak with a tax attorney or professional to determine their status and bring filings current prior to July 15, 2020.
Because of relief measures available, now is an excellent time to speak with a tax lawyer about your tax profile, wealth portfolio, or allegations of tax crime you feel could be in the offing. As the markets continue to roll, solid tax planning and defense against tax controversy can protect your assets and financial stability.
Chicago IRS attorneys provide strategic guidance on civil and criminal tax matters
Serving international and local clients from offices in Chicago and Cleveland, Illinois, the legal team at Robert J. Fedor, Esq., LLC delivers experienced legal guidance on tax filings, avoidance of tax fraud, and strategic representation during an IRS criminal investigation. Call us at 800-579-0997 or contact us today.