The IRS is closed today, but you can file your taxes if you already haven’t through the online tax filing facilities of the IRS, e-file and Free File. These IRS facilities are free of charge, and make tax filing fast, easy and more convenient. Those who are not internet savvy may seek help to e-file taxes because of the presence of tax scammers. When e-filing your tax return, go to the authentic IRS website: irs.gov.
Resolving Past Taxes
Those who file late should consider the IRS penalties and interest that are added monthly to the tax amount. It is best to let a tax preparer submit the tax return(s) to include the late filing penalties and interest.
Installment Agreement: Those who haven’t filed because of financial hardship may consider paying through a tax debt payment plan, such as an Installment Agreement. Those who can pay some amount of their taxes due are advised to do so in order to minimize the interest charged on the total amount.
Offer in Compromise: If a taxpayer is experiencing a severe economic crisis, you can get your tax debt reduced through the IRS payment plan Offer in Compromise. Remember not everyone can get their tax debt reduced. On the contrary, the IRS may charge penalties for applying for a payment plan a taxpayer has little chance of qualifying for.
Currently Not Collectible: In cases where the IRS expects improvement in the financial condition of a taxpayer, they wait to recover as much amount of tax debt as they can. In such cases, it is best to consider applying for the Currently Not Collectible program. After qualifying for this plan, the IRS will not be able to use collection actions against the taxpayer.
If you take timely action to resolve any tax problem, the IRS cannot hurt you. It is important to know the tax laws and IRS rules to recover from the most complicated tax issues without a scratch.
Labels: Back Taxes, Installment Agreement, IRS, Offer in Compromise, Tax Filing, Taxpayers