The Coronavirus is Worrying People About Receiving an IRS Tax Penalty

Have you received notice from the IRS that you have a tax penalty? If so, do you pay it, or do you fight it? Or are you concerned that you might get a penalty because your annual return is late as a consequence of the COVID-19 pandemic?

COVID-19: Setting the scene

Before we provide an answer to these questions, let’s consider the backdrop to this scenario.

The novel coronavirus, COVID-19, was first discovered in China during the last days of 2019. It is since swept through the world’s populations, causing untold economic and physical devastation. Current statistics, published by worldometers.info, show that there are just under 8.4 million infections and 448 420 deaths.

When this virus was first discovered, scientists, researchers, and medical professionals knew very little about the virus, except that it spreads rapidly via person-to-person transmission. And, the only way to control and prevent its spread is through social distancing. Therefore, the world’s governments implemented a hard lockdown, bringing the global economy to its knees, and forcing people to shelter-in-place or stay at home.

Consequently, it stands to reason that people are late with the submission of their annual tax returns. And, it is equally reasonable that, because of the added stress and anxiety caused by the pandemic, people are concerned that they will receive a penalty because their 2019 tax returns are late.

Providing the antidote to IRS tax penalties

The good news is that, according to the CARES Act, signed into law on 27 March 2020, the deadline date for filing 2019 tax returns has been extended to 15 July 2020. And, if you are unable to file a 2019 return, the IRS will take the details from your 2018 return to calculate your 2019 tax rebate.

However, there might still be a chance that you might receive a penalty, or you might still be concerned about the risk of being penalized for a late, or non-existent 2019 return. And, this worry might be driving your anxiety levels even higher than they are.

The perfect antidote to anxiety is to gather facts and hard evidence to allay your fears. Therefore, in this context, the best advice to follow is to contact a legal and tax expert to discuss the validity of a tax abatement penalty. And, should you be facing tax penalty assessments, it is a good idea to hire a legal advisor to help you challenge the veracity of this assessment.

Final thoughts

The post-COVID-19 era is challenging for everyone, particularly people who are naturally prone to panic and anxiety. The biggest challenge is that no one knows what tomorrow holds. Will the New Normal be with us for the foreseeable future? Or, will life return to what we know?

The good news in all of this is that there are legal experts available to guide you through the combination of the IRS penalty assessment challenge and what it means in the New Normal.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes