TaxAudit, the largest tax representation service in the country, released new survey results which uncover how the COVID-19 crisis is financially impacting American taxpayers. According to the survey, the majority of taxpayers (61%) are deeply concerned that the financial impacts of COVID-19 may force them into tax debt, adding to the $131 billion already owed to the IRS by 14 million Americans. The survey also found that more than a third of taxpayers (37%) do not have the resources to pay 2019 taxes owed despite the deadline being extended to July 15th.
Read More: smartTrade’s Solution Awarded Best Multi-Asset EMS System by Markets Media
With record high unemployment, the TaxAudit survey shows the burden faced by taxpayers due to the crisis, with many making the difficult choice to drain savings accounts and miss mortgage payments, property tax payments, and even some monthly bills just to survive. With concern mounting, taxpayers are also wondering if they’ll owe more in taxes next year because they have borrowed from their retirement funds, sold stock or liquidated investments, or started collecting Social Security benefits earlier than anticipated.
“COVID-19 has resulted in a financial crisis that, understandably, has taxpayers deeply concerned about being able to pay their taxes this year, despite the extended deadline. Fear of falling into tax debt next year is clearly warranted,” said Arnold van Dyk, Esq., TaxAudit’s Director of Tax Services. “Tax debt is already a massive underreported problem in this country with millions of taxpayers in billions of dollars of debt owed to the IRS, and COVID-19 is only compounding the problem. For taxpayers concerned about falling victim to tax debt, it’s important to know your rights and seek guidance from a reputable agency to help negotiate with the IRS.”
Read More: How Coronavirus is Impacting Multifamily Investments and the Transaction Process
