The New IRS People First Policy
The Internal Revenue Service has been stating since the Trump Administration came into office that they wanted to be a “kinder and gentler” government agency, and it now appears they are taking action to support the claim. The fallout of the Coronavirus pandemic has resulted in the passage of a new emergency relief bill providing funds for all American taxpayers regardless of there previous tax liability status. This means that many who still owe taxes will still be allowed to receive their relief payments with no interception by the IRS. Not only will the relief payments be exempt from interception, but the agency is also suspending the Field Collection Activities through July 15th, 2020. This means that Cuyahoga Falls residents who have a tax issue may want to consider discussing the issue settlement during this suspension period with the assistance of an experienced Cuyahoga Falls lawyer like the legal professionals at Brunsdon Law.
All preexisting installment payment agreements to the Internal Revenue Service have been suspended with this legislation, so anyone who is in the process of satisfying a prior arrangement will have some time to recover after the relief checks are released. Those who cannot pay their full tax liability with their 2019 filing will be allowed a monthly installment agreement or extension automatically.
Offers in Compromise
The Internal Revenue Service also negotiates offers in compromise when attempting to collect tax revenues. This usually occurs over a designated period of information exchange, but they too are being suspended until July 15th, 2020. Anyone who has a pending OIC will be postponed at least to that date. This gives delinquent tax payers more time to negotiate a deal that could be better than anticipated when their Cuyahoga Falls lawyer is successful in building a strong case for a reduced tax burden. Offers in compromise could also be satisfied with an installment agreement as well, which could result in less liability than in standard negotiations during a regular collection situation.
There are also many who have not filed taxes this year as yet, not to mention those who who have not filed in quite some time. The IRS says all of those who did not file before this year’s deadline should file before July 15th and no penalties will be assigned in their case. Low income wage earners who have not filed even for multiple years will be eligible for installment agreements also, and the agency urges all of these delinquent filers to do so during this grace period. This is actually an excellent opportunity for these individuals to comply with a favorable outcome.
All in-person meetings between taxpayers and IRS agents have also been suspended until July 15, 2020, which means that communications will be conducted by mail and scheduled phone calls. All of those facing a potential physical meeting with agency representatives will have this requirement waived during this time, which can be a significant advantage to the taxpayer. Many people and businesses have unique situations for certain tax aspects such as earned income credit and business interruption due to the Covid-19 pandemic, and the IRS will use a reduced demand policy. This also includes cases that are in the appeals process. However, the agency also stresses that compliance during this suspension period is still necessary and filers should take advantage of the opportunity while it exists. Statute of limitations issues will still be observed by the agency, and a Notice of Deficiency could still be filed against a taxpayer when they do not respond in a timely fashion when general information is requested.
Fresh Start Policy
It is important for tax filers to understand this is a good opportunity for them to make their tax account current with the Internal Revenue Service regardless of their personal situation. The odds are good that the agency will be lenient with those who comply and show a willingness to be honest and responsible with the government. The policy is intended as a “fresh start” shift from the former standard operational procedure, but it is still best to have comprehensive legal counsel during this period to avoid substantial penalties that could be avoided with a tax professional representing your case.
Contact Brunsdon Law
All Cuyahoga Falls residents who have questions concerning the new tax policy should contact Cuyahoga Falls lawyer Terri Brunsdon at Brunsdon Law for more information.