Coronavirus- What To Expect with the IRS?

rajneet

Administrator
Staff member
As we all know, the current deadline to file taxes for the 2019 income tax return has been extended until July 15, 2020. This extension has been implemented in order to allow taxpayers to deal with the current Coronavirus pandemic. You may still file for an extension if needed, but any balance owed for the 2019 tax year must be paid by July 15, 2020. Failure to pay can result in penalties of up to 25% of the unpaid tax balance.


The IRS has also recently announced that for the first time, taxpayers can amend their 2019 tax return electronically. This action is to help ease pressure on both the taxpayers and IRS employees. Normally, if a taxpayer needed to amend a tax return, the Form 1040-X would need to be mailed to the IRS. However, taxpayers can now choose the e-file option to amend their 2019 tax returns.

In terms of collection action by the IRS, everything is on a halt until July 15, 2020. The IRS is not taking any collection actions such as bank levies, wage garnishments, revocation of passports, seizures, or filing of federal tax liens. This action has been taken in order to allow taxpayers time to deal with the coronavirus and its effects on daily lives.

In my professional opinion, post July 15, 2020, the IRS will be aggressive in collecting any unpaid taxes owed to them. Before the pandemic, 19 million taxpayers owed the IRS a total of about $391 billion. It is projected that another 10 million taxpayers will owe the IRS post COVID-19. In addition, about 7.5 million taxpayers do not file their tax return every year. The IRS will be aggressive in its compliance efforts as well as filing of federal tax liens to claim their right on the taxpayer’s property as an effort to collect the unpaid tax debt.

In my professional opinion, now is the best time for taxpayers with back taxes to resolve their taxes and seek a structured resolution with the IRS. It is not a hidden fact that the IRS is currently backlogged with paperwork, allowing taxpayers to e-file their amended tax returns for 2019. Due to backlogging, changes in economic circumstances, and more, the IRS will ease some of its guidelines to push cases through. What does all of this mean? More than ever, now is the time to take advantage of the situation and approach the IRS for a resolution. It is also highly recommended that you hire a tax professional who understands the tax laws, codes and Internal Revenue Manuel (IRM)to help you get the structured resolution that you deserve.
 

rajneet

Administrator
Staff member
Yes, you can- based on your circumstances and financial conditions, the IRS is more likely to offer you a break. Our tax experts can walk you through a tax consultation to determine if you qualify for a resolution.
 

dhernandez84

New member
As we all know, the current deadline to file taxes for the 2019 income tax return has been extended until July 15, 2020. This extension has been implemented in order to allow taxpayers to deal with the current Coronavirus pandemic. You may still file for an extension if needed, but any balance owed for the 2019 tax year must be paid by July 15, 2020. Failure to pay can result in penalties of up to 25% of the unpaid tax balance.


The IRS has also recently announced that for the first time, taxpayers can amend their 2019 tax return electronically. This action is to help ease pressure on both the taxpayers and IRS employees. Normally, if a taxpayer needed to amend a tax return, the Form 1040-X would need to be mailed to the IRS. However, taxpayers can now choose the e-file option to amend their 2019 tax returns.

In terms of collection action by the IRS, everything is on a halt until July 15, 2020. The IRS is not taking any collection actions such as bank levies, wage garnishments, revocation of passports, seizures, or filing of federal tax liens. This action has been taken in order to allow taxpayers time to deal with the coronavirus and its effects on daily lives.

In my professional opinion, post July 15, 2020, the IRS will be aggressive in collecting any unpaid taxes owed to them. Before the pandemic, 19 million taxpayers owed the IRS a total of about $391 billion. It is projected that another 10 million taxpayers will owe the IRS post COVID-19. In addition, about 7.5 million taxpayers do not file their tax return every year. The IRS will be aggressive in its compliance efforts as well as filing of federal tax liens to claim their right on the taxpayer’s property as an effort to collect the unpaid tax debt.

In my professional opinion, now is the best time for taxpayers with back taxes to resolve their taxes and seek a structured resolution with the IRS. It is not a hidden fact that the IRS is currently backlogged with paperwork, allowing taxpayers to e-file their amended tax returns for 2019. Due to backlogging, changes in economic circumstances, and more, the IRS will ease some of its guidelines to push cases through. What does all of this mean? More than ever, now is the time to take advantage of the situation and approach the IRS for a resolution. It is also highly recommended that you hire a tax professional who understands the tax laws, codes and Internal Revenue Manuel (IRM)to help you get the structured resolution that you deserve.
if the irs placed a federal tax lien on me, can they seize my house ??
-daniel
 

rajneet

Administrator
Staff member
The IRS can’t just take your house. The IRS must file a federal tax lien to protect its interest. For example, If you sell a property for $500,000 and loan balance on the property is $400,000. Your gain on the property is $100,000. Now suppose, you owe the IRS $50,000 in back taxes. The escrow will send a check of $50K to the IRS and the remainder 50K will go to you.
 
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