The 2022 tax season is over. From January 24 to April 18, the Internal Revenue Service (IRS) received tax returns for fiscal year 2021 and earlier, as well as tax payments.
For taxpayers who did not file their return, the IRS offers an extension, which expires on October 17, so until that date no penalties will be applied for not filing. However, last April 18 was the deadline for paying taxes. We share some measures, help and plans to pay.
Pay IRS taxes: how to do it before the deadline and help
For those who want to settle their tax debt but can't immediately pay what they owe, the IRS offers options and measures.
installment payment plans
A tax payment installment plan is an agreement with the IRS. To enter the installment plan, you must meet IRS requirements, which include:
Be up to date in filing tax returns
State taxes and late fees must be mostly paid
Make the minimum monthly payments required by the IRS
Have less than $50,000 in debt
Offer in compromise
In this situation, the IRS allows the taxpayer to pay a reduced amount of what is owed in back taxes or short-term installments. If the IRS accepts a compromise agreement, you will have two years to settle your tax debt.
Release wage garnishments
If you owe money and have not reached a payment agreement, the IRS can proceed to garnish your wages.
Innocent spouse programs
If you file a joint tax return with your spouse, you may be held individually liable for an underpayment. The IRS offers some relief for married or separated couples if one spouse, or former spouse, hides a tax liability from the other.
Statute of limitations
The IRS has 10 years from the assessment date to collect taxes, interest, and penalties. Tax attorneys and other advisors sometimes try to use the statute of limitations to resolve a tax case. However, waiting for the statute of limitations to end is a risky strategy. If you fail, your interest and penalties due will have increased and you will be responsible for an even larger payment to the government.
“Not chargeable”
If you can offer reasons why you simply can't pay your taxes now, the IRS may put your case on hold, temporarily labeling it non-collectible.
Bankruptcy
Filing for bankruptcy can eliminate your tax debt, but it's not a sure thing.