The IRS reminds struggling individuals and businesses affected by the COVID-19 pandemic to file their 2019 and 2020 tax returns by September 30, 2022; doing so can possibly help out taxpayers and businesses qualify for late-filing penalty relief.
Don’t Miss Out On This Penalty Relief Opportunity
For any taxpayer who fell behind their taxes due to the pandemic, this is the perfect opportunity to catch up and qualify for penalty relief. As stated above, please make sure to have any qualifying federal income tax returns filed on or before September 30, 2022, in order to be eligible for COVID penalty relief. Penalties are typically assessed at a rate of 5% per month, up to a maximum of 25% of the unpaid tax when an income tax return is filed late.
What If I Miss The Filing Deadline?
Those who file several months following the deadline of September 30 are still eligible for penalty relief but it’ll be partial instead of the full amount of the relief. It is encouraged for taxpayers and businesses to file sooner than later so charges won’t apply. Based on each month or part of a month that a return is filed late, the penalty increases. The interest rate is set to rise to 6% on October 1st.
If you end up filing late and missing the deadline, penalties start to accrue which will eventually lead to tax debt and we don’t want that right? No taxpayer in their right mind wants to owe money to the IRS especially if it becomes a struggle to pay off. It is very important for taxpayers to remain tax compliant because it will save you interest and penalties on the current year and prevent you from a continuous circle of always owing tax.
The IRS Fresh Start Program consists of 4 main programs that are accessible to taxpayers who owe much more than they can reasonably afford to pay. The four major programs are as follows: Currently Not Collectible (CNC) Offer In Compromise (OIC), Installment Agreement (IA), and Penalty Abatement (PA). These relief programs allow qualified taxpayers the option to reduce or even eliminate their tax liabilities. These tax experts will help you qualify for the program and help you figure out which options will give you the most suitable outcome.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.