The Effect of COVID 19 on IRS Tax-Related Operations

July 3, 2020 | Tax Issues

The Effect of COVID 19 on IRS Tax-Related Operations

COVID 19 has badly affected the whole world. It posed the danger for both the health and economic factors of all countries. As of current status, the United States of America is the biggest victim of Coronavirus. This pandemic affected the daily legal operations of the United States. The Internal Revenue Service’s operations are also affected due to the threat of the spread of COVID 19. If you are a taxpayer of the USA then you must know the changes and challenges of IRS’ tax-related operations in 2020. Here we comprehensively explained how COVID 19 affected the IRS’ operation, and now, what challenges it poses for you.

The IRS Extended the Deadline for Filing the Tax

The deadline for tax filing extended to July 15 2020 from April 15 2020 due to the effect of COVID 19 in the USA. Now, you can pay your tax by the extended date of tax filing. It is an automatic extension that applies to all that means you do not need to apply for an extension. However, if you want more days to file your tax or you want to file your tax after July 15, 2020, you can request an extension to the IRS by submitting the filled extension application form online. If you have any questions or confusion regarding the updated tax filing scenario, you can take assistance from the best IRS tax lawyer. Doing so, you can reduce the burden of tax filing from yourself. He/she will help you in all types of tax issues and act in your interest.

COVID 19 Tax Relief

In response to ongoing COVID 19, the department of treasury and the Internal Revenue Service announced a special federal tax filing and payment relief authorized under section 7508A of the Internal Revenue Code. The IRS and Treasury Department provided the relief in Notice 2020-18, 2020-20. 2020-16 IRB 660, and 2020-23. For comprehensive details, you can head over to the official website of the IRS.

Here are the eligibility criteria of COVID 19 federal income tax returns filing relief you need to know.

Eligibility- Any taxpayer (an individual, a family, a trust, a corporation, an unincorporated business entity, and an estate) with a federal tax return or payment due on or after April 15, 2020, and before July 15, 2020, is eligible for COVID 19 tax relief under notice 2020-23. Additionally, any taxpayer with a specified-time sensitive act due for the same period (April 15, 2020, to July 15, 2020) is also eligible for tax relief.

COVID 19 tax relief is for all the tax players as mentioned above. Don’t think that you will have to be sick or quarantined to get a federal income tax return and payment relief package. Another important thing about this tax relief is that whether April 15 2020 was your original due date or extended due date for tax filing, your due date is postponed to July 15, 2020.

Foreign Bank Account Report- The people who have foreign financial holdings, this tax relief is also for them. Now, you are automatically allowed to report your foreign bank account report by July 15, 2020. You do not need to request an extension. However, if you need more days after the extended deadline then you will have to request an extension explaining the convincing reasons.

File You Returns Using Electronic Option

This is the most important thing about the current tax filing status, The IRS is constantly encouraging the taxpayers to use the electronic medium to pay their taxes in response to the threat of the spread of COVID 19. By doing so, the Internal Revenue Service is promoting social distancing among people. So, if your federal income tax return is due for the fiscal year, pay it by July 15 2020 using the electronic tax filing option. If you need assistance with this, you can hire the best IRS tax lawyers near your locality. He will help you complete all your complicated tax filing matters within a few days. If you do so, you do not need to worry about your tax filing. Just sit and relax at your home.

No Paperwork

Paperwork is completely suspended these days. You can neither request a paper application form nor pay your return in the paper filing process as the IRS has very limited staff these days. The only option you have is to use the electronic medium for filing your returns. Also, if you have any queries and confusion, you can get a proper solution on the official website of the IRS. So, keep this in mind until further notice. However, some automated phone lines and some tax compliance lines to handle the taxpayers’ calls are available. The IRS also started a taxpayers’ assistance center to the public in phases from June 29, 2020. So, this is good news for you as you can take assistance by using these services.

Don’t Call the IRS for Any Query

In compliance with orders of the health authorities in the USA and to protect its employees and taxpayers, the IRS decided to limit or suspend its certain services such as telephonic live assistance, responding to correspondence, and processing paper tax returns. So, don’t expect that you can get live assistance on the telephone during this period as nobody is there to respond to you. However, you can visit the official website of the Internal Revenue Service or hire the best IRS tax lawyer if you have any queries or issues regarding tax filing. So, keep this in mind before dialing to the IRS.

These things will be changing over time and as the effect of COVID 19 will reduce in the United States of America.

Attorney Timothy Hart

Timothy S Hart, the founding partner of the tax law firm of Timothy S. Hart Law Group, P.C. is both a New York Tax Lawyer & Certified Public Accountant. His area of expertise includes innovative solutions to solve your Internal Revenue Service and New York State tax problems, including tax settlements through the Federal and New York State offer in compromise programs, filing unfiled tax returns, voluntary disclosures, tax audits, and criminal investigations. [ Attorney Bio ]