Tax DebtsTax Laws

Tax Challenges That Taxpayer Might Have To Face This Year

Filing taxes has never been an easy process. Changes in the rate of interest every year and modification in tax slabs could be quite confusing for the taxpayers but there are many more crucial things that taxpayers need to look out for in the coming year. With the changing laws, you must know what to expect in terms of taxes and problems caused by the tax issues if you are not aware of them. Given below are some of the critical challenges that taxpayers will most likely to face in the coming year.

Your Refund Could be Delayed: This is a common issue that seems to happen every year. When you file for a return, the IRS may perform a quick evaluation just to confirm that you exist as a country’s taxpayer, you have paid your tax amount and your fund is due. Apart from this, IRS uses filters these days due to increasing tax frauds which can cause refund tax delays. You may get stuck in a queue, resulting in a refund delay.  Such a situation could be difficult especially for low-income families who depend on their tax refunds to pay their bills and other expenses.

Tax Issues Related To Free File Option: Different private tax preparation service providers are associated with the IRS to provide Free File Service. In this service, taxpayers will get access to federal tax preparation software for free if they use it through the IRS official website. Free File is given to around 105 million qualified taxpayers. More than 80% of taxpayers were using e-filing to file their individual returns, mainly due to its quick timeframe. Unfortunately, several complaints were made about the Free File software over the last few years. The best solution to overcome this problem is taking help from a local tax preparation service or any other online software along with legal consultation from NYC Tax lawyers to avoid any tax issues.

Communication Confusion: One of the most common tax issues that people have to face is when they receive a notice from the IRS. These notices can make people confused or become panic. This issue became much worse when the IRS decided to use a combination letter which includes the initial contact letter and 30-day notice. This whole thing started in 2015 and continued through 2019. It is indefinite whether or not the IRS will continue to send these letters in 2020. This is something that every taxpayer should know. Those who had received the combination letter in the previous year, they were given very little time to provide the documentation that the IRS needed.

Taxpayers Are Not Getting the Help They Need: As already mentioned, tax laws are continuously changing. To combat this, you must hire a professional to help you with your returns. Many taxpayers drag themselves into trouble as they pay their taxes without consulting anyone.  It is necessary to find an educated and up to date tax pro that could really make things easy for you. Hire NYC Tax lawyers as they could help you relax along the way. If you don’t take any professional help, then you could end up in something very troublesome if any of the new laws apply to you. Make sure you do it on time as most of the tax lawyers get overloaded and overbooked during the peak of the season. One more thing that you should take care of – give all of your pertinent information and tax-related documents to your tax lawyer as they will definitely need it to ensure you have no pending debts.

The IRS is Tough to Navigate: People with different professions will have different tax needs but the IRS has combined everyone into a one-size-fits-all group, which can make it difficult to get assistance and answers to your queries.  The IRS has a single point of contact, i.e. its main toll-free phone number if you wish to get accurate information regarding a case. But the menu can be tough to navigate. In addition to this, many people complain that they end up on hold for an extremely long time. Even today, it seems that still taxpayers are facing the same situation and without individual tax assistance, people end up feeling frustrated and angry.

Problems with Private Debt Collection: The IRS has now expanded itself to a private debt collection program. The idea behind moving toward private debt collection was to save money. But this program added an additional burden on taxpayers who are already having financial issues. Unfortunately, the private debt collection has in fact cost more than the revenue received.

Get Ready For the New Tax Season!

With an ever-growing list of issues, it is important to be ready for any possible tax issues that may come your way.  Keep your records clean and consult with a tax lawyer who can help you navigate through the complications of the IRS. Though the IRS has to make so many improvements to its customer service and other tax-related systems, but still a taxpayer has to ensure they are doing things right so that no penalty hit them in the future.


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