Can't File or Pay Your Tax Bill On Time?
One problem that no one ever wants to be faced with is "collections" for back taxes from the government. Here are a few tips if you find yourself in a bad spot when it comes to filling this season
For some people tax filling can be a very stressful time. However if you prepare yourself properly and deal with the IRS government in an honest way you really have nothing to fear.
For example if it's time to file taxes, and you do not have the time or paperwork to complete your taxes. It is reasonable to consider filing an extension. Most times, these extensions will be automatically accepted by the IRS. Everyone runs into situations where they are short on time and filing taxes is no different.
A couple things that you may want to keep in mind when it comes to filing an extension and being accepted by the IRS on it.
- Just because you are filling for extension does not mean you are exempt from paying your taxes if any are own. If you can not pay, make sure you keep adequate records showing your circumstances which have affected your ability to pay.
- The penalty for not paying your taxes is far less than the penalty for not filling your taxes. So it is always best to file an extension.
- If you cannot come up with a way to pay the IRS may grant you a payment plan. This gives you an opportunity to make monthly payments until your due taxes are paid.
- If you owe money the IRS might lean a checking account, or even ask for security in a vehicle or other asset as payment.
- If you foresee having a problem in the future you may want to make estimated tax payments to keep your current tax year up to date. This way you are not compounding your problems by adding another year into an already unpaid year.
These are a few IRS tax filing tips that may be helpful in preventing you from getting hit with penalties.