IRS Announces Various Dates Related to Tax Season

IRS Announces Various Dates Related to Tax Season. The due date for 2020 calendar year individual income tax returns is April 15.

IRS will begin accepting individual income tax returns on February 12.  This is a result of Congressional tax law changes in late December and IRS having to modify the forms and software to accommodate the changes.  Many software companies will accept returns prior to this date and hold them until February 12.

IRS’ Free File is open.  The Free File companies will transmit the returns to IRS starting February 12.

The Path Act requires IRS to hold refunds on returns claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until at least February 15, allowing IRS to spend more time to detect and prevent fraud.  IRS anticipates starting to send out refunds from these returns the first week of March.

 

This text has been shared courtesy of:  David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111).

Tax Resolution Services offered by Acuff Tax Services

Non-filed Tax Returns
There are practically unlimited reasons why tax returns may be unfiled for several years in a row and our firm provides all the necessary tools, consulting and services required to keep your tax “health” status in compliance with the IRS. After researching the situation we will determine the right plan moving forward. We will also consider your plan moving forward to remain in compliance.

Back Taxes Owed
Whatever the cause of your deliquency, Acuff Tax Services is committed to getting your compliancy back on track. Acuff Tax Services will work with your records to complete the un-filed years tax reporting. Solutions for filing and payment of taxes owed will be implemented as far as setting the stage for compliancy going forward.

IRS Seizures
One of the bigger penalties that the IRS can place upon individuals, families and businesses with delinquent taxes owed is to seize property as part of collateral. No one wants this to happen under any circumstance and Acuff Tax is committed to doing everything possible to avoid having the IRS seize any of your property. This may involve any mixture of consulting, tax planning and IRS representation, but we will do everything we can to help individuals, families and businesses keep their properties from being seized by the IRS.

IRS Liens and Levies
Tax liens and levies are the government’s legal claims and processes used to seize your property when delinquent taxes being accruing enough to bring you to their attention. They are part of the process the IRS uses to gain back what they are owed and as a method of putting pressure on citizens to pay. As we mentioned above, Acuff Tax is committed to doing everything possible to avoid having the IRS seize any of your property and will represent you properly if it comes to that.

IRS Wage Garnishment
Another method the IRS uses as an alternative to, or as an addition to, seizing property is having a substantial portion of your income salary go towards paying off back taxes before you even receive your paycheck. For some, this is as bad or worse than having IRS seize property and Acuff Tax will, again, provide every necessary tool, service and option to avoid this penalty as best we can.

Payroll Tax Problems
One less common issue that businesses and some individuals face are problems in being able to pay taxes as part of general payroll payout each week or two weeks. There are several ways this can happen and can manifest that could lead to IRS seizure of property. Acuff Tax Services is equipped to help provide business entities with what they need to handle proper tax accounting for employee payment and avoid IRS sanctions as best we can.

Bankruptcy
Bankruptcy is a scary word for practically anyone and most definitely those who are having issues in being able to pay their taxes, but it can be an option nevertheless. Common types of bankruptcy are Chapters 7, 11 and 13 and they can provide protections but also complicate your personal finances in a lot of different ways for a long time to come. In helping navigate or avoid bankruptcy all together, Acuff Tax Services is your most reliable ally in being able to get through it in the best manner possible.

Innocent Spouse Relief
This is a tax avenue that can be considered to help relieve one spouse of a jointly-held tax account the stress and responsibility of tax-related problems. Naturally, this is a complicated process that the IRS does not make easy or easily available for all items, but Acuff Tax is professionally knowledgeable and qualified to help guide you and your spouse through the process and represent you to the IRS if needed.

Offer In Compromise
The IRS defines Offer In Compromise as, “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: Ability to pay; Income; Expenses; and Asset equity.” If this is an option you would like to consider as a tax resolution, Acuff Tax can provide fully professional and qualified representation and assistance in compromising with the IRS.

IRS Tax Audit Representation:
During an income tax audit or examination, the IRS allows an authorized representative. Acuff Tax Services will help present the strategy to defend the tax payer’s circumstance and position. We help prepare documents, attend all meetings and handle all communications as your representative.

Smart Business Strategies involves Tax Planning

Smart business tax planning can make a big difference for your company.  Working together we want to create a strategy that creates tax efficiency.  Small businesses benefit by working with a tax professional to save on income taxes. If you’re a business owner looking to minimize the impact of taxes, we welcome the opportunity speak with you.

Each business is a unique footprint. We want to consider a strategic tax initiative for your business.  We will create a portfolio based on your financial goals.  We want to look at all city, state, federal, possibly international regulations to understand what is best for your business to minimize future tax liabilities.

Whether you are opening a new business, or simply looking to maximize your efficiency for a current business, our specialty is small business tax planning.  We are happy to schedule an appointment with you today.  Contact Us at your earliest convenience.

 

IRS Notices: CP501, CP503, CP504 Update

With all the unprecedented amount of significant news coming in every day, it’s very reasonable that the subject of this blog article would escape the notice of most taxpayers in America. For that reason, we’re helping to get the notice out that, as of August 21, 2020, the IRS would suspend nonpayment tax notices for the purpose of being able to handle the backlog of COVID-era physical tax-related mail coming into their Treasury offices.

Their notice as of August 21st reads as follows:

“The IRS has suspended the mailing of three notices – the CP501, the CP503 and the CP504 – that go to taxpayers who have a balance due on their taxes. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen any possible confusion that might be associated with delays in processing correspondence received from taxpayers.

The IRS is taking the step to avoid confusion for taxpayers who previously received a balance due notice (CP14) and mailed a payment to the IRS; however, that payment may still be unopened. The CP501, the CP503 and the CP504 are follow-up notices are typically automatically sent to taxpayers who do not respond to the CP14. These automatic follow-up notices will be temporarily stopped until the backlog of mail is reduced. The IRS will continue to assess the mail inventory to determine the appropriate time to resume the follow-up notices. However, taxpayers who have received but not yet responded to a CP14 balance due notice are encouraged to promptly respond.”

What this essentially does is creates a delay of convenience for those who owe money for their taxes. The reason for this came as of the tax season extension to July 15th, which was a response to the COVID-19 pandemic and its influence on the conventional tax season in Spring. Between the times the extensions were made official, the original deadlines for tax revenue coming in and all the complications in bringing back office workers at the IRS, themselves unable to work onsite due to lockdown procedures. This will help reduce unnecessary stress by temporarily ceasing one more demand at a time when meeting obligations is much more difficult than usual, but it should be stated for clarity that money to the IRS will still be due and new deadlines for those will come in time.

For more information on the official IRS statement on this, see https://www.irs.gov/newsroom/irs-temporarily-stops-mailing-notices-to-taxpayers-with-balances-due.