Here are 10 things the IRS recently announced –
1. it will immediately suspend certain tax payments and compliance programs and pledged to not generally begin new audits or private debt collections until at least July 15
2. IRS agents will avoid in-person contact with taxpayers as much as possible until July 15
3. Payments due between April 1 and July 15 are postponed for those who entered payment plans with the agency
4. The agency will lighten enforcement efforts from April 1 to July 15
5. IRS field officers will typically not initiate any seizures of property, liens or levies during the time period.
6. They are generally not planning to begin new audits
7. *****they will CONTINUE TO PURSUE HIGH-INCOME INDIVIDUALS WHO HAVE NOT FILED******
8. They may continue processing refund claims without in-person contact
9. they could start examinations where the statute of limitations on a tax deficiency or compliance issue might be expiring.
10. they will push back both the payment and filing deadline for people and businesses until July 15.
Many of our clients and colleagues are scared and justifiably so. Even if 1 life is lost as a result of the Pandemic, that is 1 life too many.
However as a team that deals with numbers for a living, we find there have been some misunderstandings. So I thought we should inject some perspective that many may find sobering. Just 3 points and a conclusion…
Point #1 – The Italian numbers may be severely misleading
You can read more here – https://off-guardian.org/2020/03/23/italy-only-12-of-covid19-deaths-list-covid19-as-cause/
But the take-away is this –
Point #2 – Many of the key models are being “downgraded” but the downgrades get no way the amount of attention as the initial projections.
You can read more here –
but the takeaway is –
Point #3 – Comparing numbers collected by various countries can be almost MEANINGLESS
You can read more here –
But the takeaway is this –
So after these 3 points where do we go from here?
The only way this ends is when we have herd immunity. Many are now even afraid to use the term because of the attacks those who propose it have been facing. But the jumps in infection rates in both Hong Kong and Singapore after a period of decline actually make the case.
Here’s a full explanation here – https://www.theatlantic.com/family/archive/2020/03/coronavirus-social-distancing-over-back-to-normal/608752/
This is the take away –
Be patient. Take precautions. Be careful when it comes to numbers.