The IRS will not only provide relief for individuals and companies affected by the pandemic but it will also be able to use its resources to address backlogs in tax returns and letters from taxpayers, allowing them to return to their normal operations for the 2023 file season.
IR-2221-254, Hurricane Ida tax relief extended up to February 15, 2015 for certain or all of six qualifying States
Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as originally enacted March 27, 2020, the Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees. The CARES Act allowed these credits for wages paid after March 12, 2020, and before January 1, 2021. See Notice 2021-20PDF, Notice 2021-49PDF, and Revenue Procedure 2021-33PDF.
In addition, the IRS is providing penalty relief to banks, employers and other businesses required to file various information returns, such as those in the 1099 series. To qualify for relief, the notice states that eligible 2019 returns must have been filed by August 1, 2020, and eligible 2020 returns must have been filed by August 1, 2021.
The IRS assessed its collection activities to see how it could apply relief for taxpayers who owe but are struggling financially because of the pandemic, expanding taxpayer options for making payments and alternatives to resolve balances owed.
You complete a few forms. The IRS puts it very nicely: Let’s make deal! I'll take it for $10. The rest is yours ($99990). That's fair, isn't it?
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.
An offer-in-compromise allows you to settle tax debt for a lesser amount than the full amount. If you cannot pay your full tax obligation or it causes financial hardship, this may be an option. We take into account your unique set of facts, circumstances and circumstances.
TN-2021-01, IRS announces tax relief for victims of severe storms, straight-line winds, tornadoes, and flooding in Tennessee
Penalty relief is automatic. This means that eligible taxpayers need not apply for it. If already assessed, penalties will be abated. If already paid, the taxpayer will receive a credit or refund.
This document explains what IRS can do to recover taxes that are owed. Read Publication 594: IRS Collection ProcessPDF
The IRS takes geography into account. According to federal algorithms an individual who lives in Colorado's lowest county must earn $900 per months to pay basic living expenses like rent, utilities, and internet. This amount is greater than $3,000.
There are important changes to Child Tax Credit (CTC) which will help many families. The American Rescue Plan Act 2021 (ARPA), expands CTC for tax year 2020 only. Each qualifying child can get a Child Tax Credit of up to $3,000.
There have been important changes to the Child Tax Credit (CTC) that will help many families. The American Rescue Plan Act (ARPA) of 2021 expands the CTC for tax year 2021 only. The 2021 Child Tax Credit is up to $3,600 for each qualifying child.
KY-2021-02, IRS announces tax reliefs for Kentucky's victims of severe weather, straight-line winds and flooding.
AL-2021-01 - The IRS announces tax relief in Alabama for victims of tornadoes, straight line winds and severe storms
Tax Topic 515: Casualty, Disaster and Theft Losses. These losses may result from property destruction or damage from an unexpected or unusual event like a flood or hurricane, tornado, fire or earthquake, or volcanic eruption.
Small Business Administration (SBA). The U.S. Small Business Administration is responsible for providing financial assistance that is affordable, timely, and accessible to all homeowners, renters, and businesses located in a disaster area. For losses not fully covered by insurance, or other recoveries, financial assistance can be provided in the form long-term low-interest loans.
An offer in compromise is a way to settle tax debts for less than what you owe. If you are unable to pay all of your tax liabilities or if it creates financial hardship, an offer in compromise may be possible. Your unique facts and circumstances will be considered.
IR-2021210-210, Additional Hurricane Ida Relief From IRS: Sept. 15, October 15 deadlines, additional dates extended to Jan. 3, Mississippi for some parts; the Nov.1 deadline still applies to all of the state
According to the IRS, the Offer in Compromise program is not appropriate for everyone. Before submitting an Offer of Compromise, the IRS recommends that taxpayers investigate all payment options.