Tax help center

Is the stimulus check taxable? Do you have to pay it back? All your questions about the recent EIP answered.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was created in response to the COVID-19 pandemic to provide aid, relief, and increased economic security to affected individuals. The Act provided specific aid and tax benefits for taxpayers who needed to withdraw more money than usual from their retirement and 401(k) plans during the pandemic.

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In late December 2020, Congress passed the Omnibus Spending Bill which included the COVID Tax Reform Act of 2020 (COVIDTRA 2020). It’s an extension to the CARES Act  designed to provide additional help to protect businesses and individuals from the economic effects of the Coronavirus.

Having delinquent tax debt can have harsh consequences. This makes it important for you to understand the consequences and how to resolve these issues. One of those consequences is the government can stop you from getting, or seize, your passport.

We all know that the IRS assesses millions of dollars in penalties from taxpayers every year, but many people are not aware that the IRS also offers penalty relief for those eligible. It is important to understand what your obligations are to the IRS and the right penalty relief options there are for your particular situation. For example, you may have late payment penalty, which means you didn’t pay your taxes by the due date of the tax return, generally April 15, but May 17 for 2020 returns. There are many different types of penalties but here we will explore the types of penalty relief options offered by the IRS.

What happens if you haven't filed your taxes at all? Most people file their taxes before the May 17 deadline: it's estimated that 90% of all tax returns the IRS processes in a given year are submitted before the deadline.