The countdown is on! As the 2018 Tax return deadline approaches, the pressure is on for individuals to file their tax return and pay any taxes due. Most taxpayers have until April 15th to file and pay their 2018 taxes or at least file an extension. Due to the many changes created by the Tax Cuts and Jobs Act, along with the change in the 1040 form, some taxpayers are falling behind on filing their taxes. If you do not file by the deadline, you could face penalties and interest that could drastically increase the amount of taxes you owe.
If you don’t think you will be able to file your 2018 federal tax return by April 15th, you can request for a 6-month extension from the IRS. You can request the extension using IRS Form 4868 or through tax software. If you use a professional tax preparer, they can request one for you. While an extension gives you more time to file, it does not give you more time to pay your federal taxes. Whatever taxes you owe are due by April 15th. You must either have withheld enough taxes on your paycheck, made enough estimated tax payments or make a payment by April 15th to avoid any penalties and interest. If you pay 90%, you can avoid the penalty, but you must pay the rest of your taxes as soon as possible to avoid interest rapidly growing on that amount. There are two penalties taxpayers should be aware of and try to avoid: Failing to File and Failing to Pay. Generally, the penalty for failing to file is costlier than the penalty for failing to pay, but it is in your best interest to avoid both penalties.
If you calculate your taxes you owe and realize you won’t be able to pay the taxes in full, it is very important to try and work out a resolution with the IRS. You may need to get the help of a tax attorney if you do not feel like you will be able to negotiate for yourself. The IRS offers different options for taxpayers that can’t afford their taxes. The simplest one is an installment agreement that allows you to make monthly payments to pay off your tax debt. Others will require more work and proof of finances and income to make sure you qualify. You can learn more about those options here.
If you do not think you can file your tax return on your own or do not think that you can pay the taxes you owe, you can get help. At Polston Tax, we can help you from the very beginning by filing your tax return and making sure you take advantage of every tax credit and tax deduction. Our team of tax lawyers can also help you negotiate a resolution with the IRS if you aren’t able to pay the taxes you currently owe. Give us a call at 844-841-9857 or click below to schedule your free consultation with a member of our team.