PAST DUE TAXES ARE MORE COMMON THAN YOU THINK:
Approximately
27 million Americans have collection accounts with the IRS. The population of the United States is around
330 million, with 245.3 million of those people being adults. In 2017 just over 143 million Americans were
taxpayers. Stated another way, roughly 1
in every 6 American taxpayers owes money to the IRS. If you live in an urban or suburban
neighborhood, like I do, every time you walk down your own street you pass by 4
houses whose occupants are in collections with the IRS and maybe you’re one of
them.
As a result of COVID-19 the number
of Americans in trouble with the IRS is set to increase. Businesses and individuals left strapped for
cash due to COVID closures and struggling to make ends meet will likely forego
quarterly tax payments. Many who assume
their reduced operating revenue equates to reduced taxable income will be in
for a rude shock when they discover forgiven Paycheck Protection Loans are
considered taxable income by the IRS.
While the days of IRS agents seizing
business property, equipment and any other assets they can get are long gone, taxes
must be paid and the IRS has collection means unavailable to other creditors. For example: most creditors cannot touch
money saved in retirement accounts such as IRAs and 401[k] accounts, but the IRS
can and will levy those accounts.
Fortunately, there are ways to alleviate
those past due income taxes. Payment
plans can be worked out so that the tax debt no longer shows up on credit as
one lump sum due. Many taxpayers will be
eligible for some form of relief on past due taxes due to lockdown induced
reductions in income. Now is the time to
consult an attorney [such as myself] who in Tax Resolution.
If you or someone you know has
received a notice from the IRS contact me at 312 577-9405, or David@RatowitzLawGroup.com.
www.RatowitzLawGroup.com