In a recent interview, Manhattan tax attorney Steven Goldburd, partner at Goldburd McCone LLP in New York, revealed much needed direction about tax debt relief in uncertain times. —
For more information please visit https://www.goldburdmccone.com
When asked for a comment, Goldburd said, “It's no secret that much of the American public has taken a financial hit due to strict restrictions in place to curb the spread of the coronavirus. Because of this, at the end of March, the IRS rolled out the People First Initiative to provide tax debt relief to citizens throughout the country. Here are a couple of things to know about the initiative.”
An important topic addressed by the People First Initiative is offer-in-compromise.
“Offer-in-compromise are appealing to many as they allow people to settle their tax debt typically for less than they owe. The IRS has introduced some further measures to extend the benefits offered by an offer-in-compromise,” he commented.
When asked for an example, Goldburd said, “Let’s say you already have an offer-in- compromise in place with the IRS. You now have the option to suspend payments until July 15 of this year if you choose to do so. It’s worth mentioning, though, that the interest payments will continue to accrue during this period.”
Goldburd was quick to add that anyone who needs to provide additional information to complete their application for an offer in compromise has until July 15 to do so.
Another welcome development is the suspension of certain collection efforts as part of the broader tax debt relief initiative.
When asked to elaborate, he commented, “The IRS will postpone collecting tax liens and levies unless they are automated or started by a field revenue officer. However, it’s important to keep in mind that IRS officers could continue pursuing non-filers who are higher earners.”
Furthermore, the IRS will refrain from sending out new delinquent tax accounts to private debt collectors until July 15.
Goldburd alluded to the fact that now is an excellent time to file any delinquent tax returns. According to information provided by the IRS, of the American population that hasn’t filed taxes for the past three years, 1 million households are eligible for tax refunds.
“The IRS is encouraging that Americans who haven’t filed in the past three years claim their refunds. Plus, there’s an added benefit to this: the stimulus checks handed out as part of the government’s $2 trillion stimulus package are based on previous tax returns,” he said.
“Filing delinquent tax returns can be quite complex, which is why so many people put it on the backburner. To catch up on your taxes during this time, the best thing to do is to consult with an experienced tax professional who can help you navigate your tax debt in this new reality.”
Source URL: http://RecommendedExperts.biz
Release ID: 88962559