Don’t Pass Up The Perfect Opportunity That This Pandemic Presents
I wrote about this topic last month and am going to harp on it once again. (See my April Article entitled Pandemic Opportunity) The reason why I’m sticking with this is that the IRS is currently in a very rare forgiving mood as a result of the COVID19 pandemic. You are not likely to catch them in such a forgiving mood once this passes. So, if you haven’t filed your tax returns during the last three years, this is the perfect opportunity to resolve any outstanding liabilities in the most favorable way.
Additionally, you could be one of the more than one million taxpayers who have not filed their tax returns in the last three years who are actually owed refunds. Filing now could result in a refund, but if you haven’t yet filed for the 2016 tax year, any refund that is due will expire on July 15, 2020. If you miss that filing deadline, your refund will automatically become the property of the U.S. Treasury. Add any refund you’re owed to the stimulus check that everyone is getting and the motivation to file and get on the IRS’s good side should be pretty high.
But if you owe the IRS and you cannot make a full payment, this is also the perfect time to enter into an Installment Agreement or an Offer in Compromise as part of the Fresh Start Program. Because the IRS is in this forgiving mood due to the pandemic, the best time ever to resolve outstanding tax liabilities is most probably now. Due to our current economic conditions, it’s also important to note that tax year 2020 will likely result in reduced income levels. And reduced income levels can be quite beneficial when preparing and calculating an Offer in Compromise. Give our office a call if you are ready to resolve your IRS tax issues. There’s never been a better time.