Many Americans have nagging thoughts about missing the IRS tax deadline of April 15th. The longer no action is made on each year's return, the more penalty possibilities arise. No matter how far behind a person is in back tax payments there are options for paying the debt. Here are some tips on paying late taxes.
It taxes are currently owed, but the return was not filed by the April 15th deadline, there may be interest on any unpaid federal taxes and a failure to file penalty. The IRS will deny a request for an extension that is filed after midnight on April 15. Tax returns should still be filed, no matter how late.
The failure-to-file penalty is 5 percent per month, or part of a month, of the balance due, up to a maximum of 25 percent. If the tax return is more than 60 days late, the minimum penalty is $135 or the balance due, whichever is less.
Interest and penalties add to the total amount owed. The sooner the tax return is filed the fewer fees accrue for not filing. Ask about payment plans or for exactly how to be granted an extension. Some cases qualify for an extension. This extra time can help an individual or family find the resources to pay off the debt.
Tax Refund Check
Many citizens are not receiving tax refunds due to other unpaid debts. These debts could be tickets issued by city or county courts or for child support arrears. Always call to clarify if there are any pending debts that are due. Many people will not file their taxes on time if they believe they are not going to receive will not a sizable monetary return due to back debts that are owed.
The IRS can offset the refund and pay the open debts. If the debts are paid the next years refund will be issued as long as there are no pending open debts associated with the individual social security number.
Injured Spouse Tax Form
The spouse who is not responsible for the debt can request for their half of the income tax return. Contact the IRS to find out which injured spouse form to fill out. Completing an injured spouse claim does take additional time to process, but half of the whole refund will be sent to the spouse that does not owe any outstanding arrears or debts.
Take charge of tax problems by contacting the IRS to see what options are available. If the IRS is not able to solve the problem on the telephone, or it involves a substantial amount of money consider hiring a tax attorney. There are specialized attorneys with experience exclusively working with the IRS to settle debts. Use these tips to settle tax problems and file late IRS returns.
Website: IRS Filing Chapter 1, Publication 17, (Accessed April 1, 2010).
Renee Haswell - Nanette is a busy mother, lover of books, gourmet tea, and freelance writer. She enjoys experimenting with raw food recipes, visiting ...
