Tax Resolution Times
July 1, 2020
Protecting YOUR Income and Assets since 1991
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Patrick T. Sheehan, Esq.
Former IRS Attorney
President of IRS Trouble Solvers ® |
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As the 2019 tax filing and payment deadline approaches, the IRS reminds taxpayers and businesses that 2019 income tax liabilities as well as postponed April 15 and June 15, 2020 estimated tax payments are due July 15, 2020. This postponement provided temporary tax relief in response to the COVID-19 pandemic.
Taxpayers who owe a 2019 income tax liability, as well as estimated tax for 2020, must make two separate payments on or by July 15, 2020: One for their 2019 income tax liability and one for their 2020 estimated tax payments. The two estimated tax payments can be combined into a single payment.
A list of forms due July 15 is on the Coronavirus Tax Relief: Filing and Payment Deadlines page at https://www.irs.gov/.
Due to the COVID-19 pandemic, the IRS was unable to mail some previously printed balance due notices as a result of office closures. As IRS operations continue to reopen, these notices will be delivered to taxpayers in the next few weeks. Given the time it would take to reprogram IRS systems and generate updated notices, some of the notices taxpayers will receive have due dates that have already passed. However, each notice will include an insert confirming that the due dates printed on the notices have been extended.
Extended Payment Due Dates: The payment due dates printed on the notices have been extended, as described in the insert. The new payment due date will be either July 10, 2020, or July 15, 2020, depending upon the type of tax return and original due date. Taxpayers should be sure to read the insert included with the notice that explains the delay and provides the updated payment due dates. Taxpayers who have questions about their tax balance due should either visit the website or call the number provided on the notice. However, please keep in mind that phone lines remain extremely busy as the IRS resumes operations.
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The owners of the New China Buffet and Grill in Tennessee have been charged with employment and income tax fraud, conspiracy to harbor illegal aliens and money laundering. Quanwei Shi and Chongqiang Chen, both 29, are accused of hiring undocumented workers from China and Guatemala to work at their restaurant. They did not require the workers to complete any forms related to immigration status and paid them in cash.
The indictment states that Shi evaded payroll taxes by failing to withhold $175,455 from the workers’ payments. Shi is also accused of signing and filing false forms with the IRS that under reported the business gross receipts for tax years 2017 and 2018.
The illegal workers, who lived with Shi and Chen, were transported to the restaurant daily and ordered to work in the kitchen where they could not interact with the restaurant’s customers.
The defendants face up to 20 years in prison.
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Question: I did not have the funds to pay what I owe for my 2018 income tax return, which was also filed late. Not only is the IRS demanding the tax I owe, but they have slapped on huge amounts in penalties and interest. I had extenuating circumstances that caused all of this. I don't feel that this is fair....what can I do?
Answer: We can request the removal (abatement) of penalties two ways: 1) “First Time” Penalty Abatement; and 2) a Reasonable Cause Argument. The IRS writes off billions of dollars in penalties each and every year, but you must know how to do it correctly. A First Time Penalty Abatement (FTP) can be requested if you have a “clean” compliance record, meaning you have not incurred a Failure to File or Failure to Pay penalty for the 3 years preceding the year you are requesting relief for. FTP is generally granted in most cases, regardless of what the underlying reason is, if you are eligible.
If you do not qualify under FTP, there are nine main “Reasonable Cause” arguments to get your penalties removed. They are: 1) Death, Serious Illness; 2) Fire, Casualty or Natural Disaster; 3) Unable to Obtain Records (common issue with couples going through a divorce); 4) Mistake was made by the taxpayer or tax preparer; 5) Erroneous Advice or Reliance on a tax preparer; 6) Written/Oral Advice from the IRS; 7) Ignorance of Tax Laws; 8) Reasonable Cause/Ordinary Business Care and Prudence; and 9) Undue Economic Hardship.
Your tax resolution specialist will guide you through what documentation is needed to submit a formal legal request in writing. For instance, let’s say you were going through a divorce and your ex-spouse withheld records from you that were necessary to file a complete and accurate income tax return. Because of this, you filed your return late. You could request abatement of these penalties using a reasonable cause argument, specifically #3 as listed above.
We at IRS Trouble Solvers are experts in IRS tax resolution and help taxpayers with their IRS problems every day. There is a solution to EVERY problem. Generally, you’ll never have to meet or speak with the IRS once you bring us into the picture. Call us today at 877 4 IRS LAW to schedule your complimentary consultation today!
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"By the time I decided to do something, I had a $68,000.00 liability to the IRS. I didn’t know what to do. I went to one business who wanted $500 a month, with no indication of what a resolution would be or when it would happen. I visited with IRS Trouble Solvers, and walked out of the meeting feeling relieved, with a path to resolution clearly laid out, and a firm understanding of what the charges would be. IRS Trouble Solvers worked with the IRS on my behalf, securing a Direct Debit Installment agreement for $165.00/mo — a saving of over $800.00 per month compared to what the IRS wanted.
I can’t tell you what a difference it made to have the IRS Trouble Solvers on my side. Their staff treated me with respect, treated my case as if it were their priority, kept me informed of the progress and truly brought me back to living my life without the IRS hanging over my head." Joe A., DuPage County
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Maurice Fayne, one of the stars of VH1’s “Love & Hip Hop: Atlanta” has been arrested and charged with federal bank fraud for misusing funds from the SBA’s Covid-19 Paycheck Protection Program (PPP).
Fayne runs a corporation called Flame Trucking and his PPP loan application claimed that he had 107 employees and an average monthly payroll of $1,490,200.00. He applied for a loan in the amount of $3,725,500.00 and was approved for $2,045,800.00. Georgia state records show that Flame Trucking was established in April 2019, but investigators believe Fayne had no employees at the time of his PPP application. In support of his claim, Fayne produced bank statements from Arvest Bank dated October to December 2019, but Arvest Bank told investigators that the Flame Trucking account was closed in September 2019.
Fayne used more than $1.5 million dollars of the loan for personal expenses, including purchasing a Rolex, a diamond bracelet and a 5.73 carat diamond ring, which he claimed were investments that would go up in value because he was wearing them. He also paid $40,000.00 in child support and leased a Rolls Royce Wraith.
On May 11, less than a month after Fayne submitted his PPP application, federal agents searched his home and found $80,000.00 in cash, including $9,400.00 that Fayne had in his pockets. Agents also seized $503,000.00 from three bank accounts Fayne either owned or controlled.
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2020 Patrick T. Sheehan & Associates, d/b/a IRS Trouble Solvers®
All rights reserved.
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Our mailing address is:
314 N. York Rd.
Elmhurst, IL 60126
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