We could be in for an interesting tax year again this year. Last Friday, IRS announced that individual income tax returns will not be able to be electronically filed until February 12th. This is two weeks later than in previous years. IRS has significant challenges remaining from the 2019 tax filing season. As of November 24, 2020, they had more than 7 million 2019 returns still waiting to be processed. Countless envelopes containing checks have not yet been opened or processed, yet here we go into the 2020 tax season. So far, IRS has no intention of extending the deadline again this year for the filing of the returns or the payment of your 2020 income taxes. This could change, but you shouldn’t count on it.
We anticipate that IRS is going to continue to have significant problems and further delays during 2021. For this reason, we are recommending for the 2020 Tax filing season you should avoid filing paper returns and mailing them to IRS. Instead make sure you electronically file all returns. Additionally, we strongly urge our clients to refrain from sending estimated payments or balance due tax payments via US mail. Instead, you should try to make all payments electronically. Individuals with checking accounts can make direct payments with no fees by clicking here and completing the required information. All business entity tax payments should be made through the Electronic Federal Tax Payment System (EFTPS).
IRS is slowly starting to ramp up collection activity. The full brunt of collection actions has continued to be delayed, but officially, for the time being, IRS has a green light for pursuing any, and all, taxes owed to them. While there is not a lot of pressure being applied to most taxpayers YET, IRS might begin to levy your bank account, garnish your wages or place a lien on your property at any time.
If you have an IRS tax problem, it’s wise to develop a plan now as to how to solve the problem. It is always best for you to go to IRS before they come chasing after you. Tudor Financial Group can help protect you from having bad things happen when you are behind on filing your returns or paying your taxes. We can also help to permanently resolve your tax problems by developing a workable solution that IRS will accept. We can help you and your loved ones sleep better at night, knowing your problem is going to get solved. We know that every tax problem has a solution. Let us find the solution which will work for you.
Reach out if you need our help. In almost all cases, you won’t even need to talk with anyone at the IRS—we will do the talking for you.