The deadline for Personal, C Corp, Estate and Trust Income Tax Returns is tomorrow, April 15th. That’s right. It’s manana. What do you do if your income tax return is done and you can’t afford the balance?
You should file the return and pay whatever amount you can afford.
Let’s remember that there are two penalties that you face. The first is Failure to File and the other is Failure to Pay. Both of these can total a 25% increase in the amount you owe before interest.
If your return is filed by the deadline you’ll avoid the Failure to File penalty altogether. At that point, you’ll only need to worry about the Failure to Pay penalty which is assessed at 5% per month that the balance remains unpaid.
If you think that you can pay it off in the next few months then go ahead and make your payments. But if this isn’t an option, you can request a payment plan.
Under normal circumstances these are granted as long as the amount owed is under $50K and the repayment term is less than 72 months.
It’s always better to file the return. These things have a way of creeping up on you.
First it’s one year, then two, and by the third year you’re so far behind that the only thing you want to do is hide. And that’s no way to live.
File your returns and get on a payment plan.
Let me leave you with this…
There’s even more upheaval at the IRS. The Associated Press is reporting that Melanie Krause, Acting Commissioner of the IRS, is stepping down. Last Monday, the Treasury Department and Homeland Security signed an agreement to share information to identify and deport taxpayers living in the US illegally.
Commissioner Krause was none too happy.
The IRS Commissioner’s Job has turned into one of those positions in Washington that no one seems to want. This comes after acting commissioner Douglas O’Donnell, a 40 year veteran of the agency, also stepped down for basically the same reason.
With the paid early retirements, firings, and other workforce reductions, the question becomes is anyone actually processing returns this year.
The last three times I’ve called the Service, I got a recorded message saying that no one was available to take the call and that I should call back. And I’m not calling the regular published numbers that everyone else uses. If there were even reasonably staffed, my calls would be answered.
Be prepared for any and all IRS Issues to take much longer than usual. Whatever it is, from an amendment to a refund, be patient.
Sooner or later, someone will get to it.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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