So many unprecedented events occurred in the first part of 2020. One of them was that the IRS postponed tax day to July 15 to give people affected by current events extra time to deal with their tax situations. However, few people here in Massachusetts — or elsewhere for that matter — anticipated the scope and far-reaching ramifications, especially to people’s financial situations.
Those now facing large tax bills may not be able to pay and will wonder what happens next. Back in March, the IRS announced its “People First Initiative,” which is designed to assist struggling taxpayers. Many of the agency’s tax collection avenues and methods were to be suspended from April 1 through July 15. Some activities continued during this period, but only under certain circumstances and conditions.
Now that this time has passed, Massachusetts residents could start hearing from the IRS. It is not yet known whether the IRS will extend this initiative or resume normal collection activities that were previously suspended. For some individuals, this could mean levies, liens, garnishments and other measures. They could even begin receiving calls from the agency’s private collection agencies.
The IRS may have taken a hiatus from its collection activities, but it could now come back with a vengeance. Taxpayers who are now facing potential action from the agency regarding taxes they owe may want to take advantage of the payment remedies available. That is, if they agree with any tax assessment received from the agency. Before taking any action, it may be worthwhile to sit down with a tax attorney in order to make sure that their rights and interests are protected.