Tangling with any tax debt owed to the IRS is always complex even when societal issues are not present. The IRS itself, because of Covid-19 restrictions in 2019 and 2020 found itself backlogged with not only 2019 returns, but also an influx of new 2020 returns. For the most part, IRS agents and state tax agents were restricted to remote work which created a huge barrier to efficiency in processing. Field agents were not in play at all. This barrier to efficiency also segued over into the management by the IRS of individuals that owed federal and even state taxes.
The IRS People First Initiative Disaster Relief for Delinquency Payments
The CARES ACT of 2020 and the American Rescue Plan of 2021 did include extensions for repayment, but those extensions were limited to 80 days or 120 days respectively depending upon the initial repayment plan and its date of inception. A press release was issued on July 29, 2021, that appears on the IRS website which encourages individuals impacted by the Pandemic or even other disasters to perhaps reassess their due dates and overall payment amounts even if over the initial extension deadlines. Extensions do not cover the accrual of interest.
Hardship Losses Can Vary from State to State
While the forms and information about the new extensions and additions to IRS payment delinquencies are available on the IRS website, any individual or business would benefit from the services of a tax relief professional that will ensure no mistakes are made when trying to make use of these new additions to the People First Initiative. A combination of federal and state guidelines incorporated by a tax consultation specialist will reap better results.
New Additions to the People First Law Seem in Influx Continually
A visit to the IRS site will indeed show that there is an absolute deluge of forms and different applications on new relief and of course, extensions that were added recently. The relief available also varies from state to state and includes other disasters outside the Covid-19 Pandemic.
Finding the Best Tax Consultants for Tax Indebtedness is Imperative
This is especially true now with the changes made to the approach in the collection of delinquencies and the extensions as well as new disaster relief programs. Making even the smallest mistake with indebtedness to the IRS and state can lead to serious problems that can take years to resolve and even result in additional liens or penalties.
IRS Indebtedness is Very Seldom Forgiven. However, it Can Occur.
This is not general knowledge by many that owe tax debt and only a small percentage occurs, but forgiveness can occur. Extensions that need expansion and even tax forgiveness pleas should always be handled by a professional in tax relief. The approach to tax indebtedness is in constant change now, and only an experienced tax professional should be consulted before any new actions are taken on the part of anyone who is in arrears.
Have Questions? Learn More About Tax Debt Relief by Contacting Anderson Bradshaw Today
Navigating the complexities associated with tax debt can be extremely challenging. Our tax consulting firm, Anderson Bradshaw, is comprised of skilled and experienced tax professionals and consultants that can help you through your unique tax situation, including ways to secure tax debt relief. With over three decades of experience in the industry, we have seen many different tax issues and have learned the best ways to handle them based on our clients’ unique situation. For further information or to schedule a free 30-minute Tax Consultation contact Anderson Bradshaw today at 877-550-3911 to or fill out this form to receive a complimentary Tax Evaluation.
