Dealing with the IRS may be one of the most intimidating thoughts or notions for any American taxpayer. Everyone wants to know how to deal with the IRS when such unmentionable time arrives. Here are some tips for two common situations in which taxpayers may have to deal with the IRS. The first is the situation when a taxpayer simply has an inability to file a return and pay taxes; the second situation is the occurrence of an extensive delay in receiving an anticipated tax refund. Both may necessitate IRS contact. A qualified tax professional may offer the necessary guidance and assistance in these and many other tax-related scenarios.
*Inability to pay taxes
If a taxpayer can’t pay the taxes owed at the time a return is due, he or she should file a return nevertheless. In the future, if interested, a taxpayer may take advantage of the available IRS payment options. A tax professional may assist in helping determine which payment option is best as each option has different requirements. Before entering any kind of payment agreement, it’s important that the taxpayer has the ability to pay the set amount each and every month, on time.
Most options for paying off a tax debt work best if a taxpayer is proactive. By taking action as soon as possible, stress will be reduced and the IRS will be prevented from further action to collect the debt. The tax bill will be there whether or not a return is filed, so file.
The IRS assesses interest and failure-to-file penalties for filing late. The IRS offers up to 120 days to pay a tax bill in full. Interest and any penalties continue to accrue until the tax debt is paid in full.
Please see our past blogs about payment arrangements that may be available to pay your tax debt to the IRS.
*Failure to receive a refund
Often, a taxpayer files a tax return early to receive an anticipated refund as soon as possible and nothing happens for months. At some point, you wonder: “What happened to my refund?” The IRS provides a method of checking the official status of a tax refund. Here’s the information:
- IRS.gov “Where’s My Refund?”
- The IRS2Go mobile app
- IRS toll-free Refund Hotline – 1-800-829-1954
- It is recommended that a taxpayer waits at least 21 days after e-filing and six weeks after mailing a return to make phone contact with the IRS.
It’s possible that the refund was lost in the mail or stolen. In this case, it must be reported to the IRS so it may start to trace the payment. Once the IRS determines the check was lost or stolen, it will inform the taxpayer know how to proceed.
The IRS may be reviewing items on a return. The IRS may have offset the refund to pay another debt such as a child support or student loan obligation. Or, in a worst case scenario, identity theft may have occurred where another has filed a tax return on a taxpayer’s behalf and stolen the refund. If a taxpayer has attempted to obtain your refund from the IRS, and not having the money is causing a financial hardship, there may be help available.
It is wise for both individual and business taxpayers located in the Tri-State area to consult with a tax professional to help assess their current tax situation, looking ahead to the future. If you have any question about taxes, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
