Countless men and women saw their financial situation change drastically as a result of the global pandemic and accompanying lockdowns. The Internal Revenue Service recognized many people were struggling to settle tax debts and opted to make changes to help taxpayers through a difficult time. For example, they provided ways for those taxpayers to make payments or find alternatives to resolve any balance they owed.
The Position of the IRS
The IRS states it remains committed to helping individuals who owe taxes to the federal government. While taxpayers have always had options for resolving unpaid taxes, the IRS Taxpayer Relief Initiative expanded on the tools. In addition, these tools are beneficial to individuals who have always filed and paid their taxes on time but are finding it difficult to do so now as a result of the pandemic. A person should find out how to take advantage of these programs promptly to get some much-needed relief.
Certain payment plan options have been extended from 120 days to 180 days, and taxpayers struggling to comply with their accepted Offer in Compromise agreement terms will receive some flexibility. Certain balances resulting from new taxes will automatically be passed to an existing installment agreement by the IRS without any action on the part of the taxpayer. According to realtimecampaign.com, this allows them to avoid defaulting on the agreement.
Individuals who owe less than a designated amount can set up an installment agreement without the accompanying paperwork if the payment they propose is sufficient, and the IRS won’t file a federal tax lien if the amount owed is less than the established figure and the taxpayers only owe for the 2019 tax year.
Finally, any qualified person who has a direct debit installment agreement in place can go online to make changes to the amount they pay each month and change the due date. TaxRise can be of assistance to individuals who need help navigating these new measures.
A taxpayer also has the option of contacting the IRS to request the agency temporarily delay any collection activities. They may request an offer in compromise to settle the bill for less than what is owed or ask for relief from penalties. Most individuals find they can request assistance without ever speaking to an IRS agent. However, this isn’t the case with all relief measures, so a taxpayer must understand what steps they need to take to get relief.
Communication remains critical when dealing with the IRS. Targeted Property Tax Relief Needed to Help Taxpayers and Protect Local Services is available along with other assistance. The problem won’t go away, and the agency deals aggressively with those who are behind on their taxes.
Reach out for help as soon as one realizes they are struggling to meet tax obligations. Prompt action keeps penalties and interest to a minimum so the taxpayer doesn’t fall farther behind. If one wants help to navigate the options to determine which is best for a situation, turn to a tax relief provider. They’ll assist in getting the matter resolved so one can move forward with life.