“When is a tax return or payment considered late?”
- A tax return or tax payment must be postmarked on or before the due date to be considered filed or paid.
“What if I can’t file my income tax return by the due date?”
- The IRS will grant a properly prepared extension request to file your income taxes. The filing extension does not grant an extension to pay your taxes by the due date.
- Let Gary Kaplan do your tax preparation. We’ll calculate what you need to pay with your extension to avoid penalties and interest.
“I can’t pay my taxes by the due date. What should I do?”
- We recommend paying as much as possible with your tax return or extension to file. You can pay by credit card, but will be charged a convenience fee plus interest at your credit card rate.
“What are my other options to pay?”
- If an individual taxpayer has no other tax debts, the IRS may accept an installment agreement if the tax liability is $25,000 or less and will be paid within 5 years.
- The key is to prepare the installment agreement correctly. Let Gary Kaplan prepare your installment agreement so you don’t have to worry.
“I got an IRS notice; what do I do?”
- The worst thing you could do is ignore the notice! Many times the IRS records are not correct. Our firm has the expertise to analyze your situation and guide you on the right course to resolve any tax issue.
“Why was I selected for an IRS audit?”
There are several possible ways you may have been identified for IRS examination.
The IRS uses a computer program that assigns a numeric score to every individual income tax return after it is processed. The higher the score, the higher the probability that an IRS examination will result in a change to your tax liability.
- If the IRS has a “reasonable indication” that there is a likelihood of unreported income based on records that focus on a taxpayer’s standard of living.
- Claims for a notably large refunds, information matching programs, or inspection of a related party’s tax returns during their examination may trigger an IRS audit for you.
“What is the difference between an IRS tax lien and an IRS tax levy?”
- An IRS tax lien is an automatic lien on a taxpayer’s property when they are notified of a tax liability and do not pay within 10 days. A Notice of Federal Tax Lien announces to the public and the taxpayer’s creditors that the IRS has a claim against all of the taxpayer’s owned property.
- An IRS tax levy is the actual seizure of property to satisfy a tax debt. Federal Law allows the IRS to seize and sell any type of property – real property, personal property, wages and bank accounts. The IRS must give 30 days’ notice before placing a levy. There will be certain exemptions of taxpayer property needed to pay court-ordered child support and/or to pay the most basic living expenses.
“Are there any IRS appeals or settlements available for my tax debt?”
- Yes, and Gary Kaplan is authorized as a Certified Public Accountant to work for the best solution on your behalf. This is serious business; don’t delay if you are facing this situation. Call us today at (866) 643-3560 for a free consultation.
“What is an Offer in Compromise?”
- An Offer in Compromise (OIC) is a written agreement between the IRS and a taxpayer that allows you to pay a lesser amount in full satisfaction of unpaid IRS debt, including penalties, interest and additions to tax. It is an involved process which includes submitting a detailed Collection Information Statement, as well as the actual form stating why the IRS should grant the settlement. The OIC must be carefully planned and presented; most taxpayers can’t do this without a professional on their side. If accepted by the IRS, the taxpayer must comply with all negotiated filing and payment requirements.