With the outbreak of COVID-19, the IRS has slimmed down its operations and delayed tax filings and tax payments to help alleviate the burden on taxpayers—or in many opinions, because they know they cannot collect much from taxpayers at this time. While this “slow down” is a good thing for taxpayers, NOW is the best time to resolve your tax problems! Here’s why:
Because of COVID-19, millions of people have lost their jobs, had their hours reduced, their pay cut, or were furloughed. If you’re a business owner, your income may be looking bleaker than ever. Most taxpayer’s financial situations have been negatively impacted by the outbreak, leaving them with little to no disposable income. While this makes paying the bills harder, situations like these are when you are in the best position to settle your tax debt with the IRS.
When Polston Tax negotiates with the IRS, we decide the best resolution based on your monthly disposable income. The IRS decides how much you can afford to pay on your tax debt based on your finances and how much money you have after your “allowable expenses”.
The lower your monthly disposable income is, the better resolution you can achieve with the IRS. This is why it’s imperative that taxpayers use this time to settle their tax debt, as once their income increases or they go back to work, they will be in a worse position to negotiate their resolution. The IRS wants to negotiate when your income is at its highest and your bills are at their lowest because then you have a higher amount of disposable income.
Seeking help while your income is down or your business is struggling will likely lead to a more affordable resolution with the IRS. Now is the best time to settle your tax debt. Waiting until your income rises again to solve your tax problems likely means your settlement or resolution amount will go up!
You’re also much better off solving the tax problem now before the IRS resumes collection action and you have to worry about levies or wage garnishments.
If you need help resolving your tax issue with the IRS, Polston Tax can help! This truly is a once in a lifetime opportunity to put your tax problems behind you, for good. Give us a call at 844-841-9857 or click below to schedule your free consultation!