IRS Tax Problem Help

Did you forget to get an extension for your IRS income tax return?  Are you in a panic?  What should you do?

The first thing to do is calm down.  This is not life or death.  The next thing to do is either prepare your tax return or hire someone to help you prepare your tax return.  What is the next step after you prepare the tax return?

If you have a refund there is no problem.  The IRS does not penalize you if you file late and have a refund.  The penalties and interest due on an income tax return are based on the amount owed.  If you do not owe any income tax there is no penalty or interest due.

Now you have prepared your income tax return and you owe income tax, what next?  The IRS assesses a penalty for filing a tax return late.  The penalty is 5% per month, or any part of a month (even 1 day).  The maximum amount of the penalty for late filing is 25%.

How do we stop the late filing penalty?  File the return as soon as possible.  If you file the return before May 15^th, you will only be subject to a 5% late filing penalty.  If you cannot get the return filed by May15th, file it as soon as possible after May 15^th.  But what if I am missing a piece of information needed to file my return?  Use your best estimate of the missing piece to prepare the return.  Once you know the correct amount, file an amended return if it is materially incorrect.

Can I get the late filing penalty removed?  It is possible to get the late filing penalty removed if you have what is called reasonable cause.  Reasonable cause is a reason beyond your control that kept you from filing a timely return.  Some possible reasons could be: you became ill the week the return was due, you were suddenly called out of town for work, you could be going through a messy divorce.  You will have a better chance of convince the IRS of waiving the late filing penalty if you can show you have a long standing record of timely filing and paying your taxes.  They are much more likely to waive the penalty for someone who has been in compliance in the past, rather than someone who habitually files late.

What should you do?  Stay calm, prepare the return, file the return and ask for a waiver of the penalty, if you have reasonable cause.

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Hi, my name is Don Kozielski

Donald R. Kozielski, CPA

I help people find solutions to their IRS tax problems.  Many people let their IRS problem build up to a point where in their mind there is no solution. 

I will tell you there are solutions for most people, but the most important issue is to not let your problem go on until the IRS puts a levy on your paycheck or bank account.  The sooner you take action, the more options available to you.

If you would like a copy of my free special report “The 7 biggest mistakes Taxpayers make when dealing with the IRS and how to fix them!” just send an email to specialreport@IRSwarrior.com. I will email the report back to you.

There are solutions to your IRS Tax problems.  Call me today at 713-661-2755 to find out the options available to solve your IRS problem.

Be sure to check out my website for more information  www.IRSwarrior.com