Tax Payments Must Resume by July 15

    The Internal Revenue Service (IRS) is reminding Taxpayers who took part in tax payment relief provided due to the COVID-19 pandemic that those owed tax payments, which stopped on March 25, must now resume. The IRS is starting to reopen their offices, as many businesses are reopening, and it is necessary to restart these payments to avoid penalties and interest. There are a few details that Taxpayers must understand when going forward.

     Installment Agreements. For those who had paused payments, understand that while interest continued to accrue on these amounts, but the IRS never defaulted your agreement. Contact your financial institution to make sure they restart the direct debit payments if you had them stopped.

      Offer in Compromise. If the offer in question is still pending with the IRS, the Taxpayer should simply restart making their normal payments by July 15. The offer will be amended to involve the skipped payments if it’s accepted. If the offer was accepted and there was nonpayment due to COVID-19 hardship, then payments (including all skipped payments) should resume on July 15. No new accounts were given to Private Collection Agencies from April 1 to July 15. Taxpayers in this situations should continue their payments starting July 15. It’s not too late to contact a Qualified Tax Professional and find out what your options are.

Comments

Post a Comment

Popular posts from this blog

What is Fair in the Tax System?

                 Everyone wants to be treated fairly. That is an essential quality that all people have. But what is fairness? Trying to answer that question can prove to be difficult for some. While fairness is impartial and just treatment without favoritism or discrimination, applying this principle is a challenge. Each person has their own idea of what is fair. That is certainly true when it comes to the current tax system.           The Internal Revenue Service ( IRS ) is aware of that sentiment. After a year of review following the passing of the 2022 Inflation Reduction Act funding, they are determined to make a change. These changes will focus attention on the wealthy, partnerships, and other high-income earners who in recent years have had a sharp reduction in audits. The IRS is planning to use Artificial Intelligence to detect patterns in tax avoidance and new threats. They will also make sure that audit rates do not increase for modest earners. This is just one area that i
Read more

What is the Educator Expense Deduction for 2023?

            With the start of the new school year upon us, educators will want their students to have a complete classroom available to them. That might mean having some out-of-pocket expenses that are not reimbursed. If that’s the case, any principal, counselor, aide, or teacher who works at a K-12 school for at least 900 hours in a year can claim the Educator Expense Deduction . The current limit is $300, but that can be adjusted in the future based on inflation.           The qualifying costs can be related to books, supplies, and other materials used in the classroom. Equipment, including computer equipment and software can qualify. COVID-19 protective items used in the classroom would also apply. This can be claimed even if you use the standard deduction on your tax return. As a reminder, it is always best practice, especially when claiming a deduction, to keep good records which would include receipts. Your qualified tax professional can advise you further.
Read more

Beware of Employee Retention Credit Scams

          The Employee Retention Credit ( ERC ) is a tax credit for employers who kept paying employees while closed by government order or had a great decrease in income due to COVID-19. This is a credit that can only be claimed by certain businesses and organizations that had employees during specific time periods. With this set of criteria, the ERC is continuing to be the subject of a growing advertising campaign. Wild claims are being made about who can qualify for it.           The eligibility requirements should be considered closely. One sign of a scam is stating that the application process is easy, or that someone can find out if they are eligible for it in minutes. The ERC is noted for being a very complex credit. Scammers are trying to use this situation to steal personal information or run away with large upfront fees for work that will never take place. Dishonest promoters try to lure in victims by offering to work for a fee based on a percentage of the credit or sayin
Read more