Filing taxes can seem complicated, especially if you’ve never done it before or if there are any issues. That’s often the reason why people hire late tax filing services. Some folks tend to miss deadlines because filing can be a little unclear, others forget, and a few can’t resolve any discrepancies in the right time.
One of the main problems you’ll have if you don’t file your income tax in time is a lateness penalty, which will be calculated based on your income for each month of unpaid taxes. There’s also a penalty for filing 941 late, and that’s usually 5% of the amount of tax due. Therefore, you’ll have to pay anything you’ve missed and a little more. That can easily become overwhelming for any person or household living on a budget.
You may have also searched online for answers to questions like: what happens if I dont backfile some taxes? It’s important to know that the Internal Revenue Service could start taking whatever you owe through wage garnishments and more. Some have even had their passports taken or restricted. That’s why it’s much better to pay anything owed in time, so let’s find out how to solve your income tax issues!
Having problems with income taxes?
If you are having income tax problems, it is important first and foremost to contact a tax preparer or attorney who is knowledgeable about income tax problems and solutions. If you owe back state taxes or taxes to the IRS, not having a professional help you resolve these problems can result in wage garnishment, levies, and liens, which will only make paying the money back more financially burdensome to you. A professional can assess your personal income tax problem and your financial needs together, and use this to determine the best course of action to resolve your income tax problem. Some various solutions that can be offered to income tax problems are listed below.
An Installment Agreement is the general agreement for the taxpayer to pay the IRS monthly payments until the debt is paid off. There are several types of Installment Agreements. A traditional installment agreement is when the taxpayer pays the largest amount they are able to pay monthly until the debt is resolved.
A Streamline Installment Agreement is arranged when the taxpayers assessed balance is under twenty five thousand dollars, and the taxpayer can pay their entire balance within sixty months.
A Conditional Expense Installment Agreement is arranged when the taxpayer has monthly expenses in addition to their tax debt which need to continue to be paid off, but can still pay off their tax balance within sixty months.
A Stair Step Installment Agreement is arranged so that the taxpayer pays a set amount for the initial twelve months, then a larger amount for the following forty eight months, to ensure payment is fully made within sixty months.
A Partial Pay Installment Agreement is arranged when the taxpayer is not able to pay off their debt within the collections statute. The taxpayer provides full financial disclosure, and the IRS accepts the possible monthly payment.
Some other solutions to income tax problems that are not fully explained here include Penalty Abatement, Currently Non Collectible, and an Offer in Compromise. More like this blog: incometaxproblem.net
