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- Category: Learn
The IRS recently announced that they are
suspending certain tax payments and compliance programs, and the agency pledged to not start new audits or private debt collections until July 15.
Though they are generally not planning to begin new audits, they will continue to pursue high-income individuals who have not filed, the IRS said. They may also continue processing refund claims without in-person contact and could start examinations where the statute of limitations on a tax deficiency or compliance issue might be expiring.
This is what we currently know, although this initiative by the IRS will be an evolving policy.
These are truly trying times for everyone, and while many people are taking this time as an opportunity to pause and take care of things they were putting off from housework to taking control of their finances, others are looking at deadline changes such as this and taking them as an opportunity to further put off dealing with stressful situations.
It’s understandable to feel the urge to avoid situations that cause increased anxiety during uncertain times, but putting off something that can be as life-changing as unaddressed tax debt will only become more of a concern down the line.
From our years of experience, we can confidently tell you that people who wait until July 15th will be at a major disadvantage. The backlog alone of people simultaneously trying to reach out at the last minute is going to cause a mountain of correspondence issues and clogged phone lines to the IRS as normal operations slowly resume. This is only going to make it more difficult for you to take control of your tax problems.
This extra time we have been given to slow down and stay home can be a major opportunity for you to sit down and face your tax debt head-on. Take this time NOW to get it fixed once and for all. It does not have to be as stressful as you fear it will be. Working with professionals can greatly reduce the apprehension of the situation and increase your likelihood of having an outcome that is in your favor.