We heard from a lot of real estate professionals who were shocked when their 2019 income tax returns were finished, and they saw how much tax they owe. 2020 has been a banner year for many real estate agents and mortgage brokers. The significant increase in earnings has caused their total taxes to quickly get out of hand--especially when adding the dreaded self-employment taxes to the regular income taxes. Many of the clients we hear from simply do not have the funds to pay the taxes due.
As tax resolution consultants, we are always continuing to learn and gain more expertise in resolving our clients tax problems. One important activity I’m looking forward to participating in this week is the 2020 New England IRS Representation Conference. It’s a two-day conference where we have the opportunity to listen to and rub shoulders with the IRS Commissioners and some of the top fellow tax resolution consultants in the country. These types of events enable us to continue to grow and gain more insight in to resolving taxpayer collection and enforcement issues. During these sessions, we have the unique opportunity to visit with, and to ask questions of, the IRS Chief Counsel, Acting Chief of the Independent Office of Appeals, the Small Business/Self-Employment Commissioner, the former IRS national Taxpayer Advocate and Charles Rettig, the current IRS Commissioner.
One of the recent changes introduced by IRS two weeks ago makes it much easier to set up installment agreements and provides additional tax relief to taxpayers struggling with tax debts. Taxpayers who qualify for some of these added relief measures will find that IRS personnel is much more receptive to our offers to settle tax debt and help to alleviate the stress from having IRS breathing down your neck.
There has never been a better time to come forward and file past years’ tax returns or to confront your collection issues and establish an installment agreement with monthly payments you can live with. Even if you currently have an installment agreement, if you’re having difficulty keeping up with the payments, you now might be able to renegotiate without starting all over. If you filed your 2019 tax returns and you now owe IRS even more money, you might qualify to add on the additional tax to your current installment agreement without defaulting. If you owe less than $250,000, you may be able to set up an installment agreement without having to provide any financial statements or substantiation. The previous limit was $50,000 for most people.
One thing we always learn when talking to IRS staff is, it’s always better for the taxpayer to come forward on their own. Don’t wait until Revenue Officers pay you a visit. It doesn’t have to be stressful, but it all begins with opening and reading those pesky little IRS notices. You can’t take advantage of the recent collection changes if you don’t reach out and get started. The certified staff in our tax relief office, located in Phoenix, AZ can help. This is what we do and what we do well. If we can help you, give us a call or send us an email message.