The Tax Relief Program That’s Saving Families Thousands Just Expanded
As we near the end of the year, families across America are losing their usual anticipation for the holidays. This is because 2020 has been on a downward slope since April. We witnessed record-breaking unemployment rates due to lay-offs. Some businesses closed down for good, leaving 20.5 million people without a job.
Among these businesses that were forced to shut down, is the IRS. A lot of us view the IRS as an entity that’s constantly working, and always will be present. The truth is, the IRS is just like any other business with a large staff. More than 46,000 employees were furloughed, and they just returned to work.
What this means for back taxes
As many of us can relate, the IRS has a ton of work to catch up on. A backlog of audits, returns, stimulus checks, and letters were waiting for them at the door.
With the next tax season being right around the corner, they have to speedily finish this year’s tasks to prepare. This is causing the IRS to make negotiations and accept offers that they normally wouldn’t. Not only do they have to acknowledge the fact that most of America is facing extreme hardship this year, but they have to get through a terrible amount of cases in a short amount of time.
As a result, tax experts are seeing an expansion in tax relief programs. Millions of dollars have been forgiven in 2020 alone. However, with so many Americans facing levies and wage garnishments, it seems as though people who need the help aren’t aware of the opportunity.
Tax Relief in 2021
By next year’s tax season, the IRS is expected to be caught up and resuming their aggressive collection activity. Especially if businesses re-open and the economy improves, the IRS won’t have much reason to continue operating the way they are this year.
This will place millions of delinquent taxpayers in their line of fire with penalties and high interest rates.
What kind of tax relief is available right now?
Although it’s been around for over a decade, delinquent taxpayers are just recently taking advantage of the Fresh Start Program. This a program that was created by the US government to protect taxpayers facing hardship.
Qualifying for Fresh Start has become much easier in 2020, as it expanded to meet the demands of the economy.