TeaHe time limit for tax extension coming soon. Feather October 17All taxpayers – except residents living in disaster areas – must pay their debt to the irs,
The IRS reported that 19 million Americans filed their 2021 tax return. However, the penalty for arrears has increased 18 April.
Still, people don’t know what to do or how to pay their taxes. some Taxpayers Have Considerable Debt With the IRSBut they are the solution for every plan.
What to do if you have tax debt?
Apply for an Installment Agreement
An installment agreement is one of Most Popular Option to Combat Your Debt with the IRS.
this is a “long term monthly payments Plan through the IRS.” Taxpayers paying $50,000 or less to the IRS must apply online for an installment plan.
Still, you must pay future taxes to get your settlement.
Compromise offer: Compromise for less
The IRS offers the option to settle for less than what you owe. A settlement offer is another way to settle your debt with the IRS.
According to Shenya Wilson, a certified public accountant and founder of Fola Financial in New York City, you can “make significantly less — the total amount payable,” she said.
you should Be present on all your tax returnsExcept as a valid extension to qualify for the “compromise offer” option.
penal relief
Penalty relief helps taxpayers who were not able to pay the IRS due to “circumstances beyond their control.”
“If a first year business accidentally misses deadline For corporate filings or its accountant backs up, the business can ask for the penalty to be reduced,” CNBC illustrates as an example.
If there is sufficient evidence to prove that you missed the date by an accident or some plausible explanation, the IRS will award you punitive relief.