To assist struggling taxpayers affected in the COVID-19 Pandemic, the IRS issued Notice 2022–36PDF. This provides penalty relief to most people or businesses who submit certain 2019 and 2020 returns late. In addition, the IRS has taken an additional step to assist taxpayers who have already paid these penalty. For eligibility, tax returns that are eligible must be filed before September 30, 2022 in order to qualify for this relief. This IRS news release provides more details about this relief.
For special circumstances to be highlighted by IRS, send a note to your Collection Information Summary (Form432-A). Your letter doesn't have to be long or formal. However, it should not exceed one or two pages. It is important to attach medical records as well as statements from your doctors. If your medical records are not sufficient to show the severity of your condition, you can write a description.
Academic Fresh Start is a program that allows residents of Texas to enroll in college courses without having to have poor academic performance.
See this IRS news release for more information on individual tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. The legislation also made changes to tax relief for employers. Continue to check back for updates.
This is not as bad as it was. The IRS has expanded its Fresh Start Initiative in 2012 and OIC acceptance rates have risen significantly from the 25-30% range.
By claiming the Child Tax Credit (CTC), you can reduce the amount of money you owe on your federal taxes. The amount of credit you receive is based on your income and the number of qualifying children you are claiming.
An installment agreement is a voluntary repayment plan that allows you to pay your tax debt over time. This can be a convenient option if you are unable to pay your debt in full right away. The key to success with an installment agreement is making timely payments. You will be required to make payments on a monthly basis, and you may be charged interest and penalties if you fall behind. In addition, the IRS may suspend or revoke your installment agreement if you do not make your payments on time. Therefore, it is important to be mindful of your budget and make sure that you can commit to the terms of the agreement before entering into one.
To learn more about the IRS Fresh Start Program, contact us for a tax case review.
Returning applicants must file no later than May 2, 2022. However, the due date may be extended to December 31 under certain hardship conditions which hampered the applicant from filing on time and are no fault of the applicant. Detailed requests for hardship waivers must be submitted in writing with the Department of Tax Administration. The 2022 tax relief application will be sent by mail to currently approved participants by the third week of January.
For the most recent information about the credit, including filing information, please visit the Advance Child Tax Credit 2021 page. Puerto Rico residents can verify their eligibility and learn more at Resources and Guidance to Puerto Rico families.
For offers that were not submitted with the required fees, a rejection is possible without appeal. After receiving the Offer the IRS has two years to make a decision. The Offer is automatically accepted if no decision is made within the deadline.
An Offer in Compromise can be submitted to settle any federal tax liability incurred under the Internal Revenue Code. This includes both business taxes (payroll, income) and individual taxes like self-employed folks who need expense reports filed on time so they don't get fines or worse! It's only eligible for settlement if there has already been an assessment--and this means April 15th each year for US citizens living inside America’s borders). But wait - certain categories of revenue aren’t due until particular periods throughout the calendar year? Yes please!!
Fresh Start makes it possible. Find out everything you need to learn about it.
Disaster Relief Resource Center for Professionals for Tax Professionals. This resource center will address many of your tax professional questions. We've provided links to IRS partners, as well as information published by IRS. Many of the resources provided by our partners can be used to aid the community of practitioners and payroll workers in the event that a natural catastrophe occurs.
According to the IRS, more than 10,000,000 accounts are flagged annually. Many people do not know of the IRS Fresh Start Program. When you feel calm after you receive a summons to appear, contact a tax relief professional. They will review your case, understand your facts, and then meet with you to discuss all options, including the IRS Fresh Start Program. A tax relief expert will ensure your application is complete, accurate, and without any delays. Be careful when working with the IRS.
When assessing a claim for undue financial hardship, we will not only consider your basic living expenses but also other factors that could impact your financial situation.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
A criminal history can make it very difficult to get employment, housing, finance and enroll in an education or secure other civic opportunities. The good news is there are ways to move on, even if you've made mistakes. The County of San Diego Office of the Public Defender will help you make a fresh start by helping to reduce felony convictions or misdemeanors as well as dismissing/expunging criminal records and obtaining Certificates of Rehabilitation.
This section provides information about IRS news that is relevant to specific areas. It mainly covers disaster relief and tax provisions that impact certain states.
Tax Relief Assistance for the CoronavirusIRS offers tax relief to those who have been affected by the Coronavirus. Check the Coronavirus Tax Relief Page for the most recent updates.
Emergency tax or fee relief is available from the California Department of Tax and Fee Administration (CDTFA) for taxpayers who have been directly affected by disasters declared as state of emergencies, both within California and nationally. Available services may include the extension of tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters.