It makes sense if you don’t like dealing with taxes. There are other Americans who feel the same way as you do about it. However, it’s essential to file your taxes on time. There are deadlines set by the Internal Revenue Service (IRS) that you must adhere to or feel the effects, which will not be very pleasant. Depending on the kind of deadline you miss, there will be different consequences. This article will explain how to deal with a missed IRS deadline, along with information on relevant tax assistance programs.
The Latest IRS Deadlines and How They Can Affect You
According to the IRS, around 1.5 million filers failed to file their taxes for the 2018 tax year. To give you some perspective, there were around $1.5 billion in tax refunds that were due. The IRS has estimated that the median return was $813, which means that 50% of refunds were higher and 50% were lower.
However, the deadline for these individuals to file their 2018 taxes was only April 18, 2022 (or April 19, in some states). This deadline was established because, in accordance with the law, taxpayers had three years to file their tax returns in order to be eligible for a refund. This three-year period typically begins on the day that tax returns are due.
Even though the deadline for filing taxes for the majority of people was the one mentioned above, those who requested an extension had more time to do so. They had until October 17, 2022, if they asked for this extension, to file their 2018 tax returns. Normally, the money would go to the US Treasury if your 2018 tax return wasn’t submitted within the three-year timeframe. If you didn’t submit your tax return by the due date, you missed your opportunity to receive a refund.
How to Handle a Missed IRS Deadline
In general, it’s critical to stick to the IRS deadline. However, there will be consequences if you are unable to do so for any reason. Each IRS deadline has certain conditions. In other words, depending on the deadline you missed, you need to take different steps. You should generally seek the advice of a tax expert. They’ll explain to you in detail what you should do, considering your circumstances.
How to Get Support When Filing Your Taxes
The IRS offers a lot of valuable programs and resources accessible for those who need assistance with filing taxes. Therefore, you can seek help from one of these programs. If you’re experiencing problems filing your taxes, you can apply for the following options:
- Tax Counseling for the Elderly (TCE)
- Volunteer Income Tax Assistance (VITA)
Tax Counseling for the Elderly (TCE)
Taxes may be difficult to manage, particularly for older citizens. As a result, the IRS established Tax Counseling for the Elderly (TCE). Yet the system is run locally by the IRS’s partners. Most of the staff at these locations are basically volunteers. To qualify as trustworthy tax counselors, these volunteers have to meet IRS standards. Participants can get the support they need from them.
People over 60 who meet other eligibility requirements and participate in this support program may be able to receive tax assistance for different types of income related to the elderly. This might include:
- Retirement plans
- Other similar types of support
Volunteer Income Tax Assistance (VITA)
This program is similar to TCE in operation but has different goals. The IRS offers this program as well, but its partners manage it. Those taking part in this program will also find that volunteers provide assistance. However, this program focuses on a different group of people. VITA seeks to assist those who do not speak English well, have a disability, or typically make no more than $60,000 a year.
How to Get Federal Assistance With Tax Debt
It can be shocking to know that Americans have a tax debt that is worth $527 billion! This shows that a huge number of Americans are struggling with tax debt. However, the IRS actually has an assistance program that can help with that, but not everyone is aware of it. Those with tax debt can apply for debt relief through the IRS’s Fresh Start program. Although it might sound like a single support option, it actually consists of four different assistance options:
- Penalty Abatement
- Offer in Compromise (OIC)
- Currently Non-Collectible (CNC)
- Installment Agreement (IA)
Having to pay the IRS a penalty has been a source of stress for many taxpayers. The buildup of these costs can make settling tax debt much more challenging. If you are dealing with this type of problem, you have the opportunity to take advantage of the Penalty Abatement support option. Through this program, you may be able to lower or even get rid of the penalties that come with your tax debt.
It is important to note that the application of this option might be difficult to handle due to specialized language, IRS codes, and other complicated information. For this reason, you should get assistance from a tax specialist when applying for Penalty Abatement.
Offer in Compromise (OIC)
Because there is such a high demand for this option, the IRS typically only accepts less than half of the applications each year. This is because it allows taxpayers with past-due taxes to settle their debts for a lesser amount than they actually owe. As a general rule of thumb, you should seek assistance from a tax expert, especially that the application process can be a bit tricky.
Currently Non-Collectible (CNC)
CNC can be a great option for you if your tax debt has piled up to a point where you are unable to pay it back. With the help of this option, your tax debts will no longer be collected by the government. Nevertheless, in order to benefit from this program, you must first meet the eligibility requirements.
During the application process, you will be required to demonstrate that you cannot repay your debt due to financial issues. Additionally, you must be recognized by the IRS and your state. This is only possible if your gross monthly income falls below the national standard for allowable expenses.
Installment Agreement (IA)
Another fantastic option for those with a significant tax burden is an Installment Agreement (IA). For taxpayers who are unable to pay their tax debt in full at one time, this option can be really beneficial. That’s because it allows them to pay off their tax debt in installments instead of a lump sum. If you wish to use this option, you must show evidence that you won’t be able to pay your tax bill in full. You will also need to provide evidence that you are current on your tax returns and that you are unable to get funding to pay off debt.
The IRS deadlines are not a joke. If you don’t file your taxes on time, you might lose out on some serious money in tax refunds. However, you will need to seek assistance from a tax expert if you miss an IRS deadline. In addition, the IRS offers tax help services, so make sure to look into them as well. Also, if you are having a hard time dealing with tax debt, you should consider the available support opportunities that the IRS provides, including the Fresh Start program. Using these support options might be a game changer for your financial situation.