We Can Work It Out
Tip of the Month
We Can Work It Out
This is done through the IRS Offer In Compromise program. This program was initially set up to deal with persons who were unable to pay the full amount of their tax bill. It allows for strapped taxpayers to offer to settle with the IRS for less that 100 cents on the dollar.
But due to a recent revisions, the IRS will now work with people who do have the money to pay their tax bill, but if they did so, would cause a hardship. For instance, if an elderly person on a fixed income had to empty their savings to cover the whole bill. Or if someone was having to care for a chronically ill family member and would not be able to meet ordinary living expenses.
For details (and there are plenty), see IRS Form 656. And if youre really serious about this, a good place to start is right here.
Hey Mister Postman Wait and See, If Theres A Letter, A Letter For Me...
Actually, it should be from me if youre mailing your return in. We thought wed give you a few mailing tips for youre your own safety:
First we strongly recommend that you dont file so close to the wire. But if you have no other choice, your return (or extension request) must be postmarked by 11:59 pm, April 15th. Just dropping it an a mailbox by midnight doesnt count. That ones easy.
If you have a private meter, the IRS does not recognize the date affixed with the postage as a valid post mark date. It is possible to date the envelope by April 15th and actually drop it in the mailbox later.
Lets ask the obvious: Did you put enough postage on the envelope? Wouldnt it be embarrassing for your spouse to find the envelope returned for lack of postage? Preserve domestic harmony. If youre not sure, slap some more stamps on there.
If youre the finicky, meticulous type, and you want proof that the IRS actually got your return, certified mail is accepted. Let not the last step trip you up, keep on dancing.
Time, Time, Time Is On My Side, Yes It Is...
If you really need another 30 days to pay your IRS bill, there is a loophole you can use. The IRS will give you another 30 days to pay your bill if you ask them to figure your tax return. Is it worth the risk? Maybe. You have to make less than $100,000 per year and you cannot itemize deduction. For the complete details (theres always details), or you just like reading IRS publications, click on this: IRS Publication 967 ("The IRS Will Figure Your Tax.").
Dont Worry, Be Happy...
Nothing here about the IRS. Just good advice: Enjoy life.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact their CPA regarding the topics in these articles.