In a perfect world, everybody files their taxes on time. It’s because a person could make themselves subject to penalties if they ignore submitting their taxes. Generally, those who failed to submit their income taxes are given three years by law to do so in order to receive a refund. So, for example, the Internal Revenue Service (IRS) set the deadline for taxpayers to file their 2018 income taxes as April 18, 2022 (or later if they were given an extension). Some people fully missed their IRS deadline, and we’re here to discuss the next steps for these people!
Steps After Someone Misses an IRS Deadline
Missing an IRS deadline sounds bad, but it’s hopefully manageable. Thus, no matter the situation, a person should contact a tax expert! It’s because a professional will offer precise information based on that person’s circumstances. Also, people need to remember that the appropriate solution may change based on the deadline the person missed. We’ll take a look at those who missed the 2018 tax filing deadline that was discussed earlier. Basically, the US Treasury took possession of the money of those who failed to file within the allowed three-year period. This is why it’s important that everyone be alert with their tax filings to avoid financial losses and penalties.
Assistance for IRS Tax Filing
People should avoid missing any tax deadlines by all means. However, we’re all busy, and some of us need extra support when it comes to filing our taxes. Luckily, the IRS offers the following programs for assistance:
- Tax Counseling for the Elderly (TCE)
- Volunteer Income Tax Assistance (VITA)
Tax Counseling for the Elderly (TCE)
Essentially, the IRS is in charge of overseeing this option for assistance. However, IRS partners run the program’s sites. These sites employ volunteers who have received IRS certification and are qualified to provide tax advice. So now that we know how the program works, let’s discuss who can take advantage of it. Obviously, just like any program, people need to meet the requirements to be eligible. So who are these people? Basically, the elderly, or in other words, those who are 60 years old or older, may benefit from this opportunity. The good thing about this program is that seniors can receive tax assistance on issues particularly relating to seniors. That includes concerns about pensions, retirement planning, and more.
Volunteer Income Tax Assistance (VITA)
The IRS is in charge of overseeing this assistance option. However, the program’s sites are run by IRS partners, just like with TCE. Having said that, this is a program that offers assistance with taxes for free. In fact, over 5 decades have passed since the beginning of this tax program. So who can take advantage of this assistance? People who are eligible for this opportunity should be individuals who can barely speak English, usually earn $60,000 or less annually, and/or have a disability.
Help With IRS Tax Debt
The name Fresh Start Program is used to refer to a variety of IRS debt relief programs. Since its start, this program has aided numerous individuals in a wide range of circumstances. It’s because, in reality, many people need this assistance. In America, there is a total tax debt of about $527 billion. So it’s a good thing that the IRS can help with this debt issue. People seeking assistance may check the following opportunities:
- Offer in Compromise (OIC)
- Currently Non-Collectible (CNC)
- Installment Agreement (IA)
- Penalty Abatement
Offer in Compromise (OIC)
Simply put, the IRS only accepts about half of those who apply for this program each year. So it’s safe to say that the application process for this opportunity may be challenging. Thus, it would be wise for people to seek the assistance of a tax expert while applying.
So who can benefit the most from this opportunity? Basically, this option can be useful to taxpayers who owe back taxes. It’s because OIC may make it possible for these taxpayers to pay off their tax debt for less than they really owe.
Currently Non-Collectible (CNC)
This program requires that the taxpayer be known by the IRS and the State. In order for this to happen, they need to reach certain income limits. Besides meeting these limits, a taxpayer will also need to present qualifying documentation. This documentation must show that a taxpayer financially cannot handle the repayment of their debt. So how does this program work? Basically, this option is a great chance for those who owe the IRS a large sum of money but are unable to pay them back. It’s because CNC simply halts the collection of a person’s tax debt!
Installment Agreement (IA)
Essentially, people who are offered this help opportunity can pay off their debt in installments. This opportunity works best for someone who owes taxes but is unable to pay them back in full right away. This is when IA can enter the scene to provide assistance. However, for someone to benefit from this program, they have to be up to date with their tax returns. On top of that, they need to be able to show proof. This proof will verify both their inability to pay their debt back in full and inability to get funds from a lender to handle their debt.
For this opportunity, people will need a tax expert’s assistance. Essentially, professional help will be needed, particularly when it’s time to complete the application. Generally, the application includes complex information that may be difficult for everyone to understand. That includes the wording and IRS codes. So when it comes to this program, people may be able to minimize or even eliminate all of the penalties from their tax burden.
It’s wise for taxpayers to consult a tax expert before making any decisions. Basically, professional help can offer individuals the assistance they need given their present circumstances. It’s also great that people have support when it comes to filing their taxes. Among the options for tax filing help are Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA). So what can a person do if they miss an IRS deadline? Well, the actual steps to take will depend on the deadline that was missed.Those who need help do have options available to them. The best way for someone to start is to do their research and seek professional help!