Why You Should Avoid Penalties and Solve IRS Tax Issues
By Todd Whalen - November 13, 2020
Why You Should Avoid Penalties and Solve IRS Tax Issues
The October 15 tax deadline has come and gone. If you missed the tax deadline, you’re not alone, especially this year with the coronavirus pandemic putting a financial strain on so many.Still, the Internal Revenue Service (IRS) is now in collection mode after graciously extending this year’s tax deadline to July 15, and then again to October 15.
While the IRS has been more flexible this year due to the pandemic, the grace period is now over and you don’t want to fall behind. This is particularly true if you have late penalties, which can increase over time.
Penalties for Missing the October 15 Tax Extension Deadline
The IRS takes missed deadlines very seriously. Depending on how late you file, your penalties can range from paying interest on your tax debt to paying a fine or receiving a tax lien. In some cases, the IRS may even charge you with a crime.I missed the October 15 deadline. Now what?
It’s important to know that the IRS is more concerned about filing than paying. Once you file, you likely have IRS options for paying past debts. But the IRS imposes steep fees on those who file late to the tune of 5% of your unpaid taxes, up to 25% of the amount due.
I filed my taxes for 2019 but I didn’t pay my tax debt. What’s my tax penalty?
In this case, you’ll usually owe 0.5% of unpaid taxes each month. That amount is cut in half at 0.25% you set up a payment plan with the IRS.
What if I don’t file for 60 days or longer?
Filing 60 days late automatically subjects you to a $435 fine from the IRS. Again, it’s more important that you file, even if you don’t have the money to pay your due tax.
Remember, you have options: Contact Advanced Tax Solutions and we can make sure you’re tax compliant while saving money.
Do I need to file my taxes to receive a stimulus payment?
If you’re one of the 9 million Americans who have yet to claim their stimulus payment, you may need to file your taxes to receive your relief payment. Note that November 21 is the deadline to claim your $1,200 stimulus check.
The IRS is Once Again Issuing Tax Liens
A tax lien is the IRS’s legal claim to your property if you neglect or fail to pay your tax debt.During the early stages of the COVID-19 pandemic, the IRS began pausing their practice of issuing tax liens against people with unresolved tax issues. Recently, however, the IRS began coming for outstanding debts through their long-standing practice of levying tax liens.
If you have outstanding tax issues, you put yourself at risk of receiving a tax lien. We understand your finances may be stressed at the moment. But delaying payments or resolutions will only compound that financial stress in the future.
Don’t put off resolving your tax issues. Let Advanced Tax Solutions help you ease your tax burden now.
3 Steps to File Your Taxes
Follow these three simple steps to file your back taxes:- Collect your W2s, income information, investment records along with any other relevant documents.
- Make a list of deductions and credits you want to claim.
- Get in touch with Advanced Tax Solutions and we’ll help you make sense of it all. We’ll take care of everything to resolve your IRS issues and avoid future actions.
The Bottom Line About Solving IRS Tax Issues and Avoiding Penalties
Don’t let a late filing or late fees turn into excessive interest, fines or tax liens. Especially when the solution is so easy. Simply contact Advanced Tax Solutions and we’ll help you find your best option to resolve your tax issues.Call (303) 753-6040 or schedule a free initial consultation now.
