Do you have IRS back taxes from years passed? Were you already dreading the idea of doing your 2019 taxes because of your federal tax liability? Are you in an existing installment agreement with the IRS for unpaid taxes or have a pending Offers in Compromise (OIC)? The IRS announced a new series of relief efforts for taxpayers in light of the challenges posed to businesses and individual by the coronavirus pandemic, or COVID-19. The People First Initiative, described as a COVID-19 effort, was announced on March 25th, 2020.
“The IRS is taking extraordinary steps to help the people of our country,” said IRS Commissioner Chuck Rettig. “In addition to extending tax deadlines and working on new legislation, the IRS is pursuing unprecedented actions to ease the burden on people facing tax issues….The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes,” Rettig added “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.”
Deadline for Filing 2019 Taxes Moved to July 15, 2020
On March 20, 2020, the IRS officially extended the federal income tax filing deadline from April 15, 2020 to July 15, 2020. An update is on the IRS site “Filing and Payment Deadline Extended to July 15, 2020.” If you were dreading filing your 2019 taxes to start payments on any tax liability, not only do you NOT need to file until July 15th, you won’t need to file for an extension until July 15th and any money you owe won’t be subject to payments or interest until then. That being stated, Ken-Mar Tax is still filing taxes, preparing taxes and working with new and existing clients to gather tax documents, so if your business is closed or has slowed-down, consider taking this extra down-time to get your paperwork in order. Contact us for a free consultation or to learn more about our virtual tax preparation.
Back Taxes: Installment Agreements, Offers in Compromise, Liens and Wage Levies
If you owe IRS back taxes no new automatic liens and levies will take place during this period, payments on existing installment agreements are suspended until July 15th and depending on where you are in the OIC process, the IRS is extending deadlines and suspending further action. To make sure you’re taking advantage of the People First Initiative relief contact Enrolled Agent, Ken Weinberg, at Ken-Mar Tax for details.
For more information about various measures the IRS has taken for coronavirus tax relief, call Ken-Mar Tax at (440)777-2207, use our contact us form or visit the Coronavirus Tax Relief page on the IRS website.
