Your BBB® would like to remind everyone who hasn’t filed their taxes yet that all is not lost: according to the IRS, the April deadline doesn’t mean you lose your right to file your taxes, it just marks the date at which penalty fees will be added to your account. Not everyone will have to pay late fees, depending on how much tax they paid during the year, but the best way to find out is to file.
How can I find out if I have late fees or not?
If you think you are supposed to receive a refund, you have to file your taxes. The refund will not be sent to you otherwise. You can even file your tax returns from up to 3 years ago and any refund you may have missed by not filing will be sent to you. However, if you owe taxes, late fees will be added to your account: you may have to pay a failure-to-file and failure-to-pay penalty fees.
What if I can’t afford to pay my taxes or late fees?
If you can’t pay the amount of money you owe to the IRS, you can use their Online Payment Agreement tool. This is a good option if owe less than $50,000 and can generate the amount needed in a couple of months or less.
You can also use the Offer in Compromise option, which is an agreement between you and the IRS to settle for a smaller amount than the one you actually owe if it’s determined that it’s impossible for you to pay the whole amount. But this is a last resort type of option and the process itself is expensive. If the IRS feels like your offer is a lowball one, you may have to restart the entire process.
For more information you can trust, visit bbb.org/Evansville!