The Pandemic Offers Opportunities For Delinquent Taxpayers

delinquent taxpayers

Without question the COVID-19 pandemic is tragic.

The loss of life, the disruption of everyday life and the economic toll is being felt around the world. However, there is also quite a bit of good coming out of it as well.

As a tax resolution attorney, I see this time as an unprecedented opportunity for taxpayers who have not filed or paid taxes in a couple of years. The IRS is being very lenient at the moment, which is a great time to do everything you can to make things right and get on their good side.

Since the tax filing and payment deadline has been extended to July 15th, there is also breathing room for those already in an installment agreement with the IRS, as well as other situations.

For Non-Filers

For taxpayers who haven’t filed in the past few years, you now have time to pull yourself together and find out the best approach for your specific tax situation. We can help you determine the best way to make the most of the IRS leniency. We are able to help our clients with phone meetings as well as virtual meetings.

The IRS says that if you haven’t filed a tax return for 2018 or earlier years, you should do so now. According to the IRS, more than one million households that haven’t filed tax returns during the last three years are actually owed refunds. This is the perfect opportunity to file a tax return and claim these refunds.

Suspended Installment Payments

If you are already in an installment agreement with the IRS, as hundreds of thousands of taxpayers are, you don’t have to make your regular payments until July 15, 2020. In other words payments have been suspended. However interest will continue to accrue on the amount owed. And, if you can continue to make your payments you will not accrue extra interest and it would be wise to continue to make your payments.

No New Delinquent Accounts Pursued

If you haven’t filed in a couple of years and the IRS has not yet come after you, no new delinquent accounts will be forwarded by the IRS to private collection agencies for collection at least through July 15, 2020. So, once again, you can be proactive and take advantage of the leniency the IRS is providing throughout the pandemic. It will likely be easier to have the IRS grant you an installment agreement as well.

No New Passport Certifications Sent To The State Department

In addition, there has been a push by the IRS in the recent past to pursue seriously delinquent taxpayers by having their passports suspended by the State Department. During the pandemic, the IRS will not file any new certifications through July 15, 2020. The IRS encourages such taxpayers to submit a request for an Installment Agreement or OIC during this period.

Discover How The Pandemic Could Be Your Opportunity

Staying healthy, staying home and following all of the health protocols are important during this time of uncertainty. Taking advantage of the IRS leniency if you are a delinquent taxpayer could serve you very well. Don’t procrastinate now. Give us a call and let us determine if and how this situation could be most advantageous to you.

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