If you’re like many people, just working with the IRS gives you anxiety, or you may not have the time it takes to do it effectively, but you should never ignore their correspondence or put anything they ask for off. Working with a professional Plymouth tax attorney is probably the best way to take care of all your paperwork and correspondence involved and get the best resolution to your problem.
First, if you become aware that you won’t be able to make an upcoming payment, you (or better your tax lawyer) should call the IRS and ask for an extension. If all you’re doing is asking them to let you skip a month, it’s doubtful that they’ll reject your request.
It is vitally important that you call ahead of time so that your payment isn’t already missed, which will put your account in overdue status. This could put you in jeopardy of incurring immediate and substantial fines.
By communicating with the IRS ahead of time, your tax lawyer can take advantage of numerous IRS programs that may help you reduce payments, work with your current situation, and avoid costly fines. You may qualify for one or more of these programs, such as the IRS back tax relief program, etc.
You will find that, in most cases, the IRS will help you if you are proactive and honest with them, as opposed to just ignoring the situation and allowing it to get worse.
By consulting with an experienced Plymouth, Hyannis, or New Bedford tax lawyer, you can stay ahead of IRS problems, and reduce the impact of the situation on yourself, and your business.
What Normally Happens If I File My Taxes Late in Massachusetts?
If you have not filed on or before the IRS due date, you may be subject to a late penalty of 1-5% per month of your taxes that are due. This is usually capped at a maximum of 25% of your total unpaid taxes. You also may be charged interest on any tax not paid on or before the original due date.
There usually is no penalty for filing after the deadline if you are due a refund. By using the electronic filing options provided by the IRS, your tax lawyer can file as quickly as possible, and mitigate the large fees which may accrue.
Due to the pandemic, the IRS filing dates have been extended and your tax lawyer will know exactly how you are affected. But if this date has come and gone and you missed it, you certainly aren’t in the clear. The longer you wait to file after any IRS deadline, the more fees, and penalties you will accrue.
This is another important reason to consult with a Plymouth tax lawyer, as they will know how to approach this issue in the best way possible thus limiting the fees and penalties you could incur. By consulting with your tax settlement lawyers as soon as possible, you will save yourself a vast amount of stress, and enormous financial difficulties.
Five Things you Need to Know About Filing and Paying Your Taxes by the Deadline.
- You still may be able to receive an extension to file your taxes. If you are unable to submit your paperwork by the given deadline, you may qualify for an extension until Oct. 15. However, this is only an extension to file, not an extension to pay. Your tax lawyer will be able to apply for an extension to file and follow up on your behalf.
- Failure to pay or properly file for an extension will result in severe penalties. The possibility of penalties means that taking the extension to file your taxes is most likely the smart move to make.
- The standard deduction for each filing status has changed slightly, according to the current IRS laws. The standard deduction is a dollar amount that reduces the amount of income on which you are taxed and varies according to your filing status, so you must be aware of your status and the correct amounts.
- The IRS knows that you may not be able to pay your balances in full by the deadlines and they do provide many payment options to help taxpayers. The options include postponing certain payments related to Installment Agreements and Offers in Compromise, to the collection and limiting certain enforcement actions.
- According to current IRS data, the number of processed tax returns on a year-to-year basis was down 11.4 percent. Additionally, the number of refunds was down 10.8 percent. People preparing for taxes were stymied because more and more were working from home and couldn’t access all the resources they had while in their offices.
All-in-all, over the past few years many things have changed regarding deadlines to file, and the IRS tax laws themselves. By consulting with a local tax settlement attorney, you can be sure you are conforming to all the current tax codes and avoid harsh financial penalties.
Ten Important Things to Remember When You Do Owe the IRS!
If you are behind on your taxes, you need to remember the following:
- Don’t ignore any IRS notices.
- The IRS must treat you fairly and courteously.
- Before you meet with the IRS, consult with a Plymouth, Braintree, or New Bedford Tax Lawyer.
- Never, ever, meet with the IRS alone.
- The IRS is not infallible.
- You are definitely entitled to due process rights.
- You may be an innocent spouse.
- You don’t usually ever go to jail if you can’t pay.
- You have many options if you owe the IRS.
- Always respect the power of the tax collector.
This is a serious problem, but not without options and solutions.
I Know I’m Behind on My IRS Taxes, What Should I Do First?
IRS tax settlement, penalty relief, and general IRS relief are complex but solvable issues. The professional tax settlement lawyers at Benner & Weinkauf, P.C. have been successfully helping Plymouth clients work through their IRS issues. Consult with them now and obtain the relief and professional guidance you need.