Flexibility for Tax Debts

Covid-19 disrupted the world with a storm and left numerous challenges and difficulties for business across the world. Small Businesses, Individual Freelancers and Consultants are finding it hard to pay the Tex Debts with business growth challenges ahead. Internal Revenue Service understands that this year has brought tough times for Tax Payers and Income Tax filing has been severely impacted.

 

IRS came up with reforms and flexibility in Tax Debts payment in two phases. The IRS Commissioner Chuck Rettig said that “The IRS understands that many taxpayers face challenges, and we’re working hard to help people facing issues paying their tax bills, Following up on our People First Initiative earlier this year, this next phase of our efforts will help with further taxpayer relief efforts.

 

In the second part of the year 2020, IRS started People First Initiative under which several tax debt individuals and businesses were benefitted with different schemes. OnlineTax Filing was made easier with less number of questions asked. Let’s go through the crucial points announced by the IRS for easy income tax efiling.

 

 

●       Instead of having 4 months for solving the Tax Debts or Liabilities, IRS has dedicated to extending the timeline to 6 months for those Taxpayers who quality for short-term payment plan option.

●       If you are unable to meet the payment terms due to COVID-19 affected businesses, the IRS is providing flexibility for a temporary duration.

●       For those businesses who are now out of running and not operable, IRS will add new tax balances to existing instalment agreement. This is also applicable for Individuals with Tax Debts. Traditionally, the agreements defaulted automatically that could have worsened the situations for people.

●       If you are one of those qualified individual taxpayers with the debt of less than $250,000, then you have the freedom of not providing a financial statement or substantiation for IRS. Instead of this, you can set up an instalment agreement with the IRS with a proposal to pay off the debt in a certain duration. Given that the amount of debt is less than $250,000, these individual taxpayers can set up an instalment agreement with the IRS without a tax lien notice filed by the IRS.

 

USA Tax Preparation Services is the best online tax service helping individuals and businesses increase tax refund with an expert team of USA Tax Consultant.