3 Tips When You Miss A Tax Deadline

If you did not file your tax return by the due date, it can quickly become a costly mistake.  The IRS imposes multiple penalties and charges interest on the balance due.  They will remind you of the problem by sending a series of nasty sounding letters and notices too.  In many cases, they will even prepare a substitute for your tax return and assess the tax based on income information they receive from third parties. 

When life gets busy and you are pulled in multiple directions at once, even with all the automated reminders from calendar and to-do applications, something inevitably falls through the cracks.  All hope is not lost; however, here are three tips to help you get back on track when you miss a tax deadline.

1.      Be diligent – take action and do not ignore your tax problem.  The IRS applies penalties on a monthly basis and interest is accruing daily, so your tax problem is continuing to grow larger with every day you wait.

2.      Be resourceful – gather all information necessary to prepare your missing returns and use the IRS information to your advantage.  By obtaining your tax records from the IRS directly through the transcript delivery system, you will know what the IRS is expecting to see on your tax return.

3.      Be informed – you have taxpayer rights and multiple options to work through your tax problem.  Whether you settle your tax debt for less than what is owed through an Offer in Compromise, enter a payment plan and spread the repayment over multiple years, or negotiate a reduction of the penalties and related interest, the point is you have choices when working through your tax problem.

To better understand your options for solving your tax issue and see if your tax problem case qualifies for our representation service, schedule your appointment today.