Tax Law Offices: What to Expect During COVID-19

A lot has changed over the recent weeks. At Tax Law Offices, we are still here for you, just as before. Here’s the IRS business you should know right now:

1) IRS has not frozen direct debit payments during COVID-19.

IRS will continue to debit payments from your bank for Direct Debit Installment Agreements (DDIAs) during the COVID-19 suspension period. However, if you are unable to meet the terms of your Installment Agreement, you may suspend payments during this period. Installment agreements will not default due to missing payments during the suspension period through July 15. Contact your bank or employer to stop those payments through July 15.

2) Most IRS Offices Are Closed.

The IRS has temporarily closed its practitioner-access phone lines and services. So for the moment, we are unable to expedite any results from either the IRS or state governments. They have also closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice. This may end sooner than July 15, so we await the announcement. The IRS is continuing to process tax returns, issue refunds and deal with taxpayers to the greatest extent possible.

3) Collection Officers and Audit Agents Are Still Working.

Revenue Officers have been instructed to delay any new levy enforcement. However, for large-dollar taxpayers (those with liability over $100,000, the collection agent has the authority to levy. This is decided on a case-by-case basis. But yes, IRS levies can still happen.

Exam agents (Revenue Agents) have also been instructed to make new audits correspondence matters. This means, there will be no face-to-face during this

shutdown period. Some IRS agents want to conduct business by phone. I suggest handling these audits by mail correspondence only, whenever practical.

4) COVID Relief Checks Are Expected April 20, 2020.

We will see. The distribution of the $1200 economic impact payments will begin in the next three weeks. IRS says they will be distributed automatically, with no action required for most people. Again, we will see.

Update: Social Security beneficiaries who are not typically required to file tax returns will not need to file to receive a payment. Instead, payments will be automatically deposited into their bank accounts. (We assume that to mean the IRS will send the payments to the bank accounts that Social Security Administration has on file, if any.) However, some people who typically do not file returns will need to submit a simple tax return to receive the stimulus payment. And there are still those for whom IRS does not have bank account information. (Like most of you all.)

Really, this “plan” adopted far too many assumptions. This plan is not quite solidified yet at the IRS level, and so we will help. Later this week, we will post a video: How to Get Your Coronavirus Relief Payment.

5) Tax Filing and Payment Deadline Extended Until July 15, 2020.

This extension was automatic, even if you did not request an extension. Once we reach that date, you may still file another extension to file, but not an extension to pay. For any unpaid tax, interest and penalties begin to accrue as of July 15, 2020. Prepare now.

6) Updates are available on our new YouTube channel.

Stay in the know. Subscribe to us at REAL TALK! – Stop IRS Problem. We give you the most important updates from IRS that affect you, your business, and your bank account.

We know this is a tough time. So we will remain ready to help for the entire duration. If you need any of our team at Tax Law Offices, feel free to call 888-227-6866, or email, just as before. We are here for you. Stay safe and healthy.