If you did not file your tax return before
the April 15th deadline, you should check whether you are required
to file or not. If you are required to file, then missing the deadline could
mean that you owe taxes. The IRS begins to charge penalties and interest on the
unpaid taxes the day after the filing deadline.
Every month that goes by, penalties are
charged and interest is added to the unpaid taxes. The IRS begins collection
efforts by sending notices, informing you about the amount of taxes owed and
how they must be paid.
If you filed for an extension to file, you
still need to pay your tax bill before the April 15th deadline.
Filing for an extension only means that you get more time to file, not to pay.
Therefore, even after getting an extension, you must pay your tax bill as soon
as possible because the IRS will charge penalties and interest on the taxes due
to be paid.
If you failed to file, you should file as
soon as possible and either pay the entire amount of taxes owed or apply for an
IRS payment plan if you cannot pay the entire tax bill with a single payment. Using
the help of a tax service is preferable if you cannot pay the entire amount of
tax debt and require tax debt reduction or postponement in the payment of tax
debt. There may be a possibility of getting a more beneficial resolution that
may include reduction in penalties and/or reduction in a reduction in tax debt.
It is best to file and pay your tax bill at
the earliest opportunity if you haven’t yet paid your taxes or filed your tax
return. Ignoring IRS notices leads to tax lien and tax levy, which may involve
the seizing and/or selling of the property/assets to fulfill the tax debt.
Therefore, resolving your tax debt early is the best choice.
Labels: Back Taxes, IRS Collections, IRS Notices, Tax Filing, Taxpayers