The old saying..."get it while the gettin's good" applies here. The IRS is behind and they have to clear up a back log. Keep reading to see our strategy for taking advantage of the IRS' weakness.
Why NOW is the time to resolve your tax issues!
Prior to Covid-19 the IRS was already affected by budgetary cutbacks which hampered its’ ability to collect back taxes, perform audits and help taxpayers deal with an overburdensome tax code. These budget cutbacks were further exacerbated by the Covid-19 shutdown. The IRS shut down for several months during 2020 and have been slowly working their way back. When they did come back their sole focus was on issuing stimulus checks, not on collecting back taxes. What this means is that the IRS’ collection’s effort was put on pause for at least a year.
So, what effect does this have on a person who owes back taxes? Right now, is the absolute best time to negotiate with the IRS for several reasons:
- The IRS is so far behind that they will accept offers not normally accepted to get the case closed.
- When an attorney calls the IRS on a taxpayer’s behalf the IRS knows they have the knowledge to legally drag out a case. A tax attorney can make the IRS do their due diligence in accordance with the tax code. The IRS does not want to do this. They need to get cases closed quickly.
- The infrastructure deal President Biden is currently trying to get passed through Congress has earmarked an additional $40 Billion for the IRS. They are looking to hire new agents and invest in modern technologies to collect more from delinquent taxpayers. The Covid stimulus package needs to be paid by someone and the only way the government can get money is through the collection of taxes.
- The government is trying to pass laws that give them access to your bank account. https://www.forbes.com/sites/irswatch/2021/04/28/banks-will-be-required-to-report-account-balances-account-outflows-and-inflows-to-irs-under-new-biden-plan/?sh=2c1defe512bf
In conclusion, the window of opportunity is quickly closing. Once the IRS is back to full staff they will be aggressively going after delinquent taxpayers. The IRS will have more staff and better technology to work with, which is terrible news for people with an unresolved tax issue. The good news is that there is still time to get things fixed before the IRS is back to full staff and before they’ve hired new agents.
Action will be taken. Will you be the one taking the action to resolve your tax issue or will you allow the IRS to take action against you?
If you want to be resolved of your tax burden but don’t know where to start, we are here to help. Our team of tax professionals can walk you through the steps necessary to resolve things with the IRS once and for all.