If you live in New Jersey and you are behind on your federal taxes, submitting an offer in compromise could allow you to resolve your tax debt without paying the full amount you owe. Before you submit an offer, however, there are some important facts you need to know, and you will want to carefully weigh all of your options with the help of a New Jersey tax defense lawyer.

While the COVID-19 crisis has had a substantial impact on New Jersey’s economy, and while many businesses have been forced to shut down, some companies are thriving. For those that are, the risk of facing a federal tax fraud investigation is a very real concern.

On March 5, 2020, the Internal Revenue Service (IRS) announced the formation of a new Fraud Enforcement Office within its Small Business/Self-Employed Division. While the COVID-19 crisis has put many things on hold, the Fraud Enforcement Office’s director, Damon Rowe, recently told Law 360 that the office is on pace to open as scheduled:

On July 26, 2019, the Internal Revenue Service (IRS) announced that it was sending “educational letters” to U.S. taxpayers who were potentially behind on their federal taxes as a result of underreporting or underpaying their cryptocurrency-related liability. On August 14, 2020, the IRS did it again.

While the Internal Revenue Service (IRS) extended Tax Day to July 15 and offered various other forms of relief to taxpayers in response to the COVID-19 pandemic, the nation’s tax collector is still vigorously enforcing taxpayers’ legal obligations. One of its primary means for doing so is by conducting audits, and many New Jersey residents and businesses can expect to face audits of their 2020 income tax returns.