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IRS offers relief on certain tax issues during the ongoing health crisis

On Behalf of | Nov 16, 2020 | Firm News |

The current health crisis has negatively impacted people in myriad ways in Maryland and across the nation. While tax concerns might seem to be low on the list of priorities for those who have become ill, had loved ones get sick or lose their lives, faced unemployment and financial challenges, it is still something that needs to be addressed. The Internal Revenue Service is perceived as an uncaring monolith that will take whatever steps it deems necessary to pursue individuals and businesses to collect what it says is owed. People should be aware of the agency’s aggression to collect taxes. Even with that, there have been certain accommodations due to the pandemic. Those facing tax issues should be aware of them.

Tax debt relief is available because of the pandemic

In the past, people who owed money to the IRS were given little leeway to pay it. Now, however, there are more choices to deal with what is owed. Depending on the situation, people can have more time to pay what they owe. Prior to COVID-19, they had 120 days. Now there are 180 days. Those two extra months can be helpful given the circumstances.

Also, those who have new tax balances and were already paying what they owed in installments will have the new amount added to the agreement. If a person or entity owes less than $250,000, they can get an installment plan even if they have not given the IRS a financial statement. Those who qualify and have an installment plan paid by debit can ask online for a lower monthly amount and to change the due date for the payments.

Tax issues can be addressed with legal help

As the current crisis shows, people can be confronted with personal and financial challenges without warning. Even those who never had an issue with the IRS and made their payments on time and in full can suddenly have the pressure of wondering how they will make their tax payments while simultaneously supporting themselves and their family. Whether it is a business or personal tax problem, having legal assistance can take a significant portion of the stress away and negotiate with the IRS to come to a reasonable solution. Consulting with a firm that has extensive experience in combating aggressive tax collection during the pandemic might help with a case.