Archive for April, 2021

Suppose That You Can’t Pay 100% of Your Tax Bill. What Are Your Options???

Tuesday, April 20th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

In a nutshell, don’t ignore this legal requirement!!  The old adage, “If I ignore it long enough, it will go away” will never apply.  You’ll also have a very difficult time explaining or justifying your decision when there are several viable options that are available to you.  I always use the IRS website for information, as that is the “gospel”!  This IRS quotation is for tax year 2019:

“The penalty for not filing a Federal tax return by the due date, or extended due date, is generally 5% of the unpaid tax for each month or part of a month that a tax return is late, up to 25% of the unpaid tax. However, if the return is more than 60 days late, a minimum penalty applies. If no return has been filed after 60 days, the minimum penalty that can be charged is $435 or 100% of the unpaid tax, whichever is less.”

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What Should You Do IF You Receive A Letter From the IRS?

Monday, April 19th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

Although there are a few exceptions to this general rule, the Internal Revenue Service will always send communications to you using the U S Postal Service. No e-mails, text messages, Tweets, or telephone calls!

The #1 rule to always remember – do NOT ignore the letter! You usually have thirty days to respond to the letter. Among the worst decisions that you can make is to ignore the letter. A prompt response will usually be favorable for your case.

From the IRS:

Issue Number: Tax Tip 2021-52

Do’s and don’ts for taxpayers who get a letter or notice from the IRS

The IRS mails letters or notices to taxpayers for a variety of reasons including if:

  • They have a balance due.
  • They are due a larger or smaller refund.
  • The agency has a question about their tax return.
  • They need to verify identity.
  • The agency needs additional information.
  • The agency changed their tax return.

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Options For Paying Your Federal Income Taxes

Thursday, April 15th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

IRS Issue Number: Tax Tip 2021-50


Here’s how people can pay their federal taxes

The May 17 deadline for individuals to file and pay their federal income tax is fast approaching. While paying taxes is not optional, people do have options when it comes to how they pay taxes. The IRS offers a variety of ways to pay taxes.

Some taxpayers must make quarterly estimated tax payments throughout the year. This includes sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the gig economy might also have to make estimated payments. The deadline to pay estimated taxes remains April 15, 2021.

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