federal taxes — can’t pay full amount!
We asked for an extension on our 2019 federal return to 10/15/20 and paid 75% of the owed tax amount on 7/15/20. Our employment situation has changed( both my husband and I are furloughed due to the COVID) and dont want to send the balance of tax due at this time . Is the IRS giving taxpayers any relief, extension, or is a payment plan the way to go. Our CPA is telling us that the IRS is suppose to be considering relief in some cases. Is there any documented plan officially from the IRS .
Any help would be appreciated.
Terry Says
I have not seen anything special about tax payment relief for individuals because of Covid. I just checked the IRS website, and found nothing there either — unless you request a delay because you are located in an area declared to be a disaster zone. Come to think of it, much of America should qualify for that designation!
You should ask your CPA to prepare an “offer in compromise” to perhaps lower or settle the amount due. If you do an online search, you will find many companies offering “tax relief” services. Here’s an example.
But I can’t and don’t recommend any particular company. Make sure you run any offers by your own accountant.
