{"id":3939,"date":"2020-08-31T11:10:07","date_gmt":"2020-08-31T15:10:07","guid":{"rendered":"https:\/\/keysolutions.us\/blog\/?p=3939"},"modified":"2020-08-31T11:10:07","modified_gmt":"2020-08-31T15:10:07","slug":"17-million-taxpayers-at-risk","status":"publish","type":"post","link":"https:\/\/keysolutions.us\/blog\/17-million-taxpayers-at-risk\/","title":{"rendered":"17 Million Taxpayers at Risk"},"content":{"rendered":"\n

Taxpayers Who Lost Their Jobs or Had Their Hours of Work Substantially Reduced May Wind Up In IRS Collections<\/strong> <\/p>\n\n\n\n

As We Continue to Endure the Health and Financial Ravages of the Corona Virus, Unfortunately More Bad News May be on the Horizon<\/strong><\/p>\n\n\n\n

Tax Pros Predict that 1 to 2 Million Taxpayers May Fail to File Their 2020 Tax Returns Due to the Pandemic Financial Crisis <\/strong><\/p>\n\n\n\n

Currently, there are 15 million taxpayers in IRS collections. IRS estimates that 7 million taxpayers are currently not filing their tax returns. Many tax professionals are predicting that another 1 to 2 million taxpayers may fail to file their tax returns due to the pandemic financial crisis and the closing of their businesses and loss of jobs.<\/strong><\/p>\n\n\n\n

You don\u2019t need to be a victim. Ignoring one\u2019s tax problem usually results in the problem only getting worse. With failure to file penalties assessed at a rate of 5% a month, over the penalty period of 5 months, that is an additional 25% of penalties on top of the taxes due. Then there is interest being assessed on the underpayment of tax and on the penalties assessed. It is not unusual that the total interest and penalties assessed are 60% to 70% of the total taxes due. <\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Mistake #1:<\/strong><\/p>\n\n\n\n

Procrastinate. Put off until tomorrow what you can do today. Let those penalties and interest accrue substantially increasing your IRS tax debt.<\/p>\n\n\n\n

Mistake #2:<\/strong><\/p>\n\n\n\n

Ignore those IRS letters and notices. The IRS sends numerous letters and notices to taxpayers allowing them certain taxpayer rights to address their assessments and set up a payment plan. Many taxpayers ignore those notices until the IRS begins to levy wages, social security benefits, and bank accounts. When the taxpayer finally realizes that the situation must be addressed, certain appeal rights may have been missed and the process to get the taxpayer into compliance becomes more complex.<\/p>\n\n\n\n

Mistake #3:<\/strong><\/p>\n\n\n\n

Forgetting that unemployment compensation benefits paid to you are taxable income and that the taxes withheld on those payments (if any) are usually insufficient. <\/p>\n\n\n\n

Tax Planning Tip #1<\/strong><\/p>\n\n\n\n

Call a tax professional who specializes in solving IRS tax problems. Better yet, call several firms. While your tax professional may be an excellent tax preparer, very few tax professionals specialize in solving IRS tax problems. You want the very best handling your tax debt problem, not someone who does it part-time.<\/p>\n\n\n\n

When you make those calls, listen very carefully to what they share with you and take notes. Are you speaking with the person who will resolve your problems, or are you speaking with a sales person? What are their credentials and experience? Check their website for testimonials and reviews. Check with the Better Business Bureau. Check if they are in good standing with the IRS if an Enrolled Agent, local bar association if an attorney, and the State Board of Accountancy if a CPA.<\/p>\n\n\n\n

Tax Planning Tip #2<\/strong><\/p>\n\n\n\n

Understand the process as to how the tax professional will solve your tax problem.<\/p>\n\n\n\n

Our process is quite simple.<\/p>\n\n\n\n