You are encouraged to file early!
I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.
Now that the official start of the “2020” Tax Season is just around the corner, its now time to turn your attention to when to file your tax returns. U.S. Treasury and others are encouraging all taxpayers to file their tax returns as early as possible. Allowing for the most timely delivery of refunds owed, as placing you further up in the que when a new stimulus check is dispersed. For some taxpayers, the only way to receive the benefits of the second authorized stimulus payment, is to file your 2020 tax returns, and claim the rebate recovery credit associated with the second stimulus amount. Don’t forget to consult your form 1444-B, for the correct amount of the payment.
Even if you feel you may owe the federal gov’t (especially, if you have back tax returns that have not been filed), now is the perfect to file your tax returns and have the tax assessed, thereby opening the possibility of an offer being accepted, favorable installment agreement, or being declared “Currently Not Collectible” (CNC, allows the statute to “run” and makes an offer more likely)
Now, with the names and addresses of more than 10 million non-filers, and more than 17 million taxpayers in collections, the IRS is set to begin their mass collection effort starting around May or June 2021. Avoid the Notice of Federal Tax Liens, Levies, and increasingly threatening tax letters from both the IRS and the State. Unfortunately for many, every year the tax deadline leaves a wave of disappointed, sad and frustrated individuals in its wake. But it doesn’t have to be this way. You have the opportunity right now to get yourself into compliance with both the federal government and the state, and resolving your tax issues, and engaging in future planning to mitigate or avoid certain taxes altogether (while still staying in compliance with the IRS, of course).
If you are one of the “disappointees” from this past tax season, or just feel as though you would at least like to discuss mitigating your tax bill and the IRS’s impact in your life. Feel free to contact us in regards to our Tax Representation/Consulting Services, as well as our potential tax planning and savings ideas.