Have You Filed Yet?
The extended income tax filing deadline of October 15 is quickly approaching. For various reasons, some taxpayers were unable to file their taxes on April 15, which was the normal deadline. For both the 2020 and 2021 tax seasons, the IRS extended the regular deadline due to COVID-19 to allow taxpayers the much needed extra time. Several tax relief acts during the pandemic, coupled with the economic pause in 2020, also meant that the IRS needed the extra time to update their systems.
Every year, taxpayers have the opportunity to apply for an extension to file and that deadline is October 15. Keep in mind that the extension to file does not give you an extension to pay taxes due. All tax liabilities are due by the regular tax season deadline, which is April 15, except it is extended by the IRS. Unpaid tax liabilities can accrue interest and additional penalty; therefore, taxpayers are advised to pay timely or at the least make some type of payment arrangement with the IRS.
Regardless of whether or not a tax return will result in a liability, it is advised that every taxpayer that is required to file a return do so and file timely. Postponing or delaying the filing of tax returns can make it rather difficult in the long run. Consequently, unpaid tax liabilities or delinquencies can also result in future offsets and hindrances to obtaining loans. Experiencing financial hardship can create a situation where a taxpayer may have to make a tough decision due to limited resources. For this reason the IRS has several options available to taxpayers. (To learn more visit: irs.gov/payments)
Payment Options
- Direct Pay – A free service where payments can be made online, directly from your bank. You can pay from either a checking or savings account.
- Debit or Credit Card – The IRS will accept most major credit and debit cards; however, there are fees associated
- Payment Plans (includes Installment Agreements) – Payments can be made over time. There are options to make short-term or long-term payment plans based on the amount owed. There is also the option to make the full payment.
- EFTPS – The Electronic Funds Transfer Payment Systems, allows you to schedule your online payments securely. This is an option mostly for businesses and is a convenient way to make quarterly estimated tax payments.
- Offer In Compromise – This is a last resort when all other options have been explored. If you are unable to pay your tax debt in full, the IRS will consider a few factors based on each taxpayer’s unique circumstances. (income, ability to pay, asset equity, etc.)
When it comes to complex income tax filing, it is well advised to seek out the assistance of a tax professional. Many opt to do it themselves; however, credentialed tax professionals such as CPA’s, EA’s and Attorneys are better positioned to handle complex tax issues. The IRS provides a directory of federal tax return preparers, which will aid taxpayers in selecting a qualified professional. Visit their website @ https://irs.treasury.gov/rpo/rpo
About Us
SLS Accounting & Business Consulting Services provides year round individual tax services (income tax preparation & tax resolution). We also offer bookkeeping and business advisory. Our practice is fully remote for your convenience and we are ready to partner with you to solve your complex business problems. We are an IRS approved E-file provider and tax services are provided by an Enrolled Agent.
To schedule a complimentary introductory call, please visit us @ https://slsaccountingsvcs.com