Why Is the IRS Delaying Collections? The Answer Might Scare You
With the outbreak of COVID-19, the IRS revealed they will be backing off collections for a short period of time. If you owe taxes, you likely breathed a sigh of relief and put solving your tax problems even further on the back burner. But is this too good to be true? Is the IRS simply being generous to taxpayers during this time? Maybe. But here’s a more likely explanation.
IRS Collections Delayed Due to COVID-19
When you decide to tackle your tax problems — hopefully with the help of an experienced tax attorney from Polston Tax — by attempting to settle with the IRS, your monthly disposable income (MDI) is considered when determining how much your payment plan or settlement will be. Because many businesses and bank accounts have been affected by COVID-19, it’s likely that your ability to pay is lower than ever.
This is bad news for the IRS, as they want the most money possible in the repayment of your tax liability. How can they get water from a well that has run dry? Simple answer – they can’t! So why should they try now? Why not wait until the economy starts to recover, and you have more hard-earned money to give them?
When Will the IRS Resume Collections?
The IRS didn’t forget about the taxes you owe, and they don’t care that because of this hard time, your bank account might not fully rebound for years to come. Even worse, the government has been giving enormous amounts of relief money to Americans, which puts them in need of more cash than ever. The time is soon coming when collections will not only resume but will likely be more aggressive than ever because of these reasons.
But for you, the best time to resolve your tax problems is now, when your income is at its lowest. You can use these last few months of devastation to your advantage and get into a resolution that reflects your past several months of income. Waiting until you’re making more money will likely mean that settlement or a payment plan will go up.
Reaching out to a tax attorney at Polston Tax and having them handle your IRS tax debt can simplify the process for you and ensure everything is handled correctly.
How a Tax Attorney Can Help With Collection Issues
With businesses starting to resume normal processes, the IRS will also start to resume collections soon, which means that you need to be more prepared than ever. If you have a tax issue that has been put off during COVID-19, a tax attorney from Polston Tax can help.
We know that self-employed individuals and small business owners have been hit hard by the pandemic, and we want to help ensure that IRS collections aren’t another challenge you need to tackle on your own. Our tax resolution services include:
- Bank levies
- Lien assistance
- Penalty abatement
- Audit representation
- Offer in compromise
- Innocent spouse relief
- Installment agreements
- IRS account investigation
- Payroll tax representation
- Revenue officer assistance
- Currently Not Collectible status placement
Don’t pay more than necessary. With Polston Tax on your side, we can help you save money and get your finances back on track.
Resolve Your Tax Debt With Polston Tax Resolution & Accounting
In the wake of COVID-19, the IRS will be looking to collect the money you owe. Our advice? Act now. Don’t get caught wishing you solved this problem when your income was low and your chances of an affordable resolution were high. Follow the steps below to resolve your tax debt with us:
- Schedule an initial consultation: The first step is setting up a free consultation with us so we can discuss your tax issue.
- Meet with a strategist: Next, you’ll meet for about an hour with a knowledgeable tax strategist virtually, by phone or in person to assess your situation.
- Develop a financial analysis: With the information you give us on hand, we will contact the state or IRS to develop a detailed analysis of what you owe and other pertinent information.
- Discuss your options: Then, we will present any alternatives that are applicable to your situation and talk to you about our fee structure. We’ll help you select the best next steps based on your budget parameters and desired outcome.
- Implement your decision: Finally, we’ll take over your case and handle any necessary negotiations with the state or IRS. We’ll support you from beginning to end while providing personalized service during every step of the process.
Ready to resolve your tax debt? Give us a call at 844-975-1611 or schedule your free consultation!
What Is Currently Not Collectible Status and How Do You Qualify for It? Paying off your tax liability on top of your mortgage, car payment, insurance, utilities, and other living expenses can feel overwhelming. The IRS understands this and may consider you eligible for Currently Not Collectible (CNC) status. When you owe taxes but have little...
Why Is the IRS Delaying Collections? The Answer Might Scare You With the outbreak of COVID-19, the IRS revealed they will be backing off collections for a short period of time. If you owe taxes, you likely breathed a sigh of relief and put solving your tax problems even further on the back burner. But is this too good to...
At first glance, it seems like “Currently Not Collectible” is a great idea. It gets the IRS off your back and forces them to leave you alone. And you can breathe a sigh of relief. Right? Well, yes and no. The upside to “Currently Not Collectible” is that yes, the IRS does acknowledge that you are...
As a business owner, you know everything there is to know about your industry. You could be an expert on your specific business, but how much do you know about business taxes? If you are like other business owners, you might not know a lot. Luckily, there are professionals who can guide you through the basic and specific tax...
If your loved one recently passed away, you may have many questions about filing income tax for them. Perhaps the most important thing is to understand that you are not alone. Dealing with a deceased’s unpaid taxes can be challenging. For example, who is responsible for paying taxes when someone dies? Do IRS debts go...
If you have a tax balance with the IRS, you may be wondering if you can get a passport. While having your passport renewal denied or revoked is a possibility, it depends on the amount you owe the IRS. If your taxes become seriously delinquent, the IRS can take action against you, leading to the...