COVID-19 Tax Relief
Since the outbreak of COVID-19, the IRS has taken steps to provide relief for taxpayers. On March 25, 2020, the IRS launched the new People First Initiative to give taxpayers relief from the burdens of COVID-19. Some examples of relief included postponing compliance action and easing up on payment guidelines.
The LifeBack Tax team understands that taxpayers may be facing uncertainty due to COVID-19. We know that you have enough on your plate, and we're here to help you through these challenging times. The Lifeback tax team is experienced in determining creative solutions for our clients, especially in times of distress. Whether you're facing unemployment, business closure, or you're just unsure of how to handle your back taxes at this time, we can help.
Expired COVID-19 Tax Relief Options
Keep in mind that many of the IRS' original COVID-19 relief provisions expired on July 15, 2020. Listed below are some of the expired provisions.
- - Personal and business tax returns
- - Non tax debt programs
- The temporary suspension of: - income tax refund offsets - monthly payments for installment agreements - non filer compliance activities - automated liens and levies - passport certifications to the State Department private debt collection
- - How long does an IRS audit take
- - Extensions to appeal audits
- - Reinstatement of existing Installment Agreements and New Installment Agreements
- - Reinstatement of OIC Requirements
Active COVID-19 Tax Relief Options
While the IRS has resumed action, they are still offering new initiatives to qualified taxpayers. Listed below are a few initiatives that are still active.
- Taxpayers with no income or means to pay can apply for a temporary suspension of collection activity through the IRS' Currently Not Collectible (CNC) program.
- Qualified taxpayers with balance due amounts can apply for installment agreements.
- Taxpayers who have previously entered Online Payment Agreements (OPA) or Direct Debit Installment Agreements (DDIA) may request changes to their payment amounts and due dates.
- First time abatement for taxpayers with reasonable cause.
- Individual taxpayers who have received notices for tax liabilities up to $250,000 for Tax Year 2019 only are eligible for one Installment Agreement opportunity with no lien filed.
- Short-term payments have been extended from 120 days to 180 days.
How We Can Help Provide COVID-19 Tax Relief
Although all of these options may seem overwhelming, don't worry. The tax professionals at Lifeback Tax have been resolving tax issues for years. Our staff is experienced in negotiating tax payment plans, installment agreements, and more. Instead of facing the IRS on your own, let us do the hard work for you. The IRS can be challenging to deal with alone. Our team of trusted tax professionals is dedicated to helping innocent taxpayers like you survive this pandemic's tax burdens.
COVID-19 Tax Relief FAQs
Can you help me get my stimulus check?
Coronavirus stimulus checks were automatically sent to eligible individuals earlier this year. If you have not filed your 2019 tax return, you can use this tool to file and apply for your stimulus check.
I applied for the stimulus payment but still haven't received it yet. What do I do?
There are various reasons as to why you haven't received your stimulus check. The IRS addresses stimulus check reasons here.
Can I still receive a stimulus check if I owe the IRS or state?
Yes, you can receive a stimulus check even if you have previous debts. The CARES Act does not take tax debts or student loans into account. However, child support payments are not waived.
Do I have to file my taxes to receive a stimulus check?
You must file a tax return to receive your check if the following applies to you:
- - If you are a dependent with unearned or unreported income over $1,100.
- - If you are an independent contractor or self-employed with an income over $400.
- - If you are single and make over $12,200 if you are married, filing jointly and make over $24,400; if you are the Head of Household and make over $118,350.
- - If you owe taxes on an IRA or Health Savings account.
- - If you got an advance payment for health coverage tax credit.