election back taxes

Does the 2020 Election Affect Tax Debt?

How will the 2020 election affect your tax debt? No matter who is in office, the IRS has the power to garnish wages and enforce other penalties if you’re delinquent. 2020 has been full of unique events that have created unique circumstances; now may be the best time ever for tax relief.

With the sudden economic decline due to increased unemployment rates, the IRS must act accordingly. The IRS is an agency that lost 46,000 employees at the start of the global pandemic. As a business, it’s extremely difficult to recover from something like that.

What this means for your back taxes

If you have been delinquent for a while, then you may be thinking: what’s the rush? Well, the IRS is open and catching up on returns and audits. They’re rushing to get the job done and can’t afford to be as aggressive as they normally would.

By 2021, the world ideally is expected to find its way back to normalcy. At that time, the IRS will have less reason to negotiate and forgive tax debt due to hardship.

Most Americas cannot afford another bill right now. The only way to settle back taxes is by coming to a mutually agreed-upon resolution. To facility tax resolution – the average taxpayer can utilize tax relief programs.

Tax Relief Options

If you owe back taxes due to hardship, then relief programs are available to you. 2020 is (hopefully) a once-in-a-lifetime kind of year that has created the best outcomes for relief negotiations. By acting now, you could save thousands and avoid harsh penalties.

The most successful program so far has been the Fresh Start Initiative. This is a program designed to protect taxpayers that cannot afford to pay the IRS.

How to Qualify for Tax Relief

Eligibility is quick and easy. You can take our brief survey by clicking here and get connected with a TaxRise representative.

You can also call our office for enrollment in Fresh Start during business hours (9:00 AM-6:00 PM PST, Monday-Friday).

Any new or systemic Liens and/or Levies will also be suspended for the time being.

For taxpayers who are considered “seriously delinquent”, the IRS will suspend any new certifications for the remaining period. Any taxpayer who falls into this category in reminded and encouraged to enter into an Installment Agreement or apply for an Offer In Compromise.

The IRS will not forward any new delinquent accounts to private collection agencies at this time.

Taxpayers have until July 15, 2020 to verify to the IRS they are qualify for the Earned Income Tax Credit or to confirm their income. If the taxpayer is unable to verify their credentials or provide appropriate documents for this credit, they are encouraged to notify the IRS before the deadline. No cases will be denied this credit for failure to provide requested information until July 15.

Case workers will continue business as usual. However, most case work will be conducted remotely (video/over the phone conferences). Any requests for documentation sent by the Office of Appeals should be responded to in a timely manner to ensure a smooth process.

The IRS will continue to take the appropriate measures to stay compliant and protect the applicable statutes of limitations. In situations where certain statutes may be compromised, taxpayers are encouraged to extend such statutes. Otherwise, Notices of Deficiency will be issued by the IRS and similar actions will be pursued to protect the interests of the government in preserving such statutes. Where a statutory period is not set to expire during 2020, the IRS is unlikely to pursue the foregoing actions until at least July 15, 2020.

Practitioners are reminded that PPS wait times may be significantly longer, depending on staffing levels and allocations going forward. The IRS will continue to monitor this as situations develop.

“The IRS will continue to review and, where appropriate, modify or expand the People First Initiative as we continue reviewing our programs and receive feedback from others,” Rettig said. “We are committed to helping people get through this period, and our employees will remain focused on these and other helpful efforts in the days and weeks ahead. I ask for your personal support, your understanding – and your patience – as we navigate our way forward together. Stay safe and take care of your families, friends and others.”

Learn how easy it is to qualify for tax savings.

Mike Wehner

Mike has been an enrolled agent and tax preparer for over 18 years and is intimately familiar with the Tax code and best practices to resolving tax debt.

All author posts
Write a comment