What Should You Do To Get IRS Tax Penalty Relief?
The deadline for extending the tax payment is coming up soon. On October 17, everyone owes money to the IRS, except for people who live in disaster zones.
The IRS said that 19 million people filed their tax returns for 2021. But penalties for unpaid balances have gone up since April 18.
People don't know what to do or how to pay their taxes, though. Some taxpayers owe the IRS a lot of money, but there are ways out of every plan.
Request instalment payments.
Payment plans are a frequent strategy to handle IRS debt.
What to do if you owe the government money?
It is a "long-term monthly payment plan through the IRS." Taxpayers who owe the IRS less than $50,000 should apply for an instalment plan online.
Offer as a way to reach a compromise:
You can pay the IRS less than you owe.
Make an offer in compromise to settle your IRS obligation.
Sheneya Wilson, a certified public accountant
and the founder of Fola Financial in New York City, says that you can "significantly knock down the total amount due."
If you want to use the "Offer for compromise" option, you should have all of your tax returns filed on time, except for those for which you have a valid extension.
Relief from a fine
The penalty relief helps people who were not able to pay the IRS because of "circumstances beyond their control."
If there is enough proof to show that you missed the deadline by accident or for a good reason, the IRS will let you off the hook.