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February 10, 2018

What To Do Before the October 15th Tax Extension Deadline if You Need Tax Help for Unfiled Tax Returns or IRS Back Taxes

Filed under: Tax — Tags: , , , , , , , , , , , — admin @ 12:50 pm

If you filed for an extension to file your tax returns in April, your taxes must be filed by October 15. The worst thing in the world you can do is not file your income tax return on time because you don’t have money to pay what’s owed!  Here’s what you need to do, if this is your situation: File your tax return on or before October 15th and send it in with a money order or cashier’s check for $10.00.  This will ensure two hugely important things:

1.) It will take the IRS’s power away to assess a 25% failure to file penalty away, and 2.) it will create a computerized record at IRS that you filed on time and made a good faith and credible effort to pay something.

So those of your who have been procrastinating better wake up! And for anyone who can’t afford to pay your taxes come April 15th or October 15 – know that you’re not alone.  It’s a common problem and a lot of people end up in tax trouble because they don’t file their tax returns on time even with an extension because they don’t have the money to pay.

Here’s what you can do before the October 15 tax extension deadline if you have unfiled tax returns or IRS debt from back taxes:

•    Get a good tax attorney or tax resolution specialist. You are in dangerous waters here where only an expert tax resolution specialist or tax attorney can help you. To get the back taxes help you need, contact a tax attorney or tax resolution specialist. They are on your side. The IRS is not.•    You need a sense of urgency. If you haven’t filed your tax return before the April 15th deadline, you need to file for an extension using Tax Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return. Not filing your taxes is the worst thing you can do because you can incur a 25% failure to file penalty right off the top.  Failure to file tax returns may be construed as a criminal act by the IRS, punishable by one year in jail and $10,000 for each year not filed.If you haven’t filed for this year, even after April 15th tax deadline you can still file for a tax extension using tax form 4868. A tax extension provides tax help because it can stop the “failure to file” penalty clock before it reaches the maximum. Get tax help from a tax attorney or tax resolution specialist if you’re tempted to file for October 15th tax extension after the April 15th deadline has passed. Only a tax attorney or tax resolution specialist can give you the tax help you need.•    You need to whip out your checkbook, even if you can only pay $5. The bad news is that even taxpayers who received a tax extension for filing are not granted more time for the payment of taxes owed and may need income tax relief.If you fail to pay your back taxes due, you will incur additional penalties for “failure to pay”. Any tax attorney will tell you that to avoid back tax penalties and interest, ideally you should pay 90% of your estimated taxes when you file your tax form 4868 on April 15th. To avoid additional back tax penalties, taxpayers should file by the deadline and pay as much as they can. You will still have a failure to pay penalty, but it’s much less.Our tax attorneys tell our tax relief clients that no matter how much is owed, if they enclose a check for $5 or $10 for back taxes with the return and file it on time, that’s going to give them tax help instantly because: 1) Filing cuts down on the failure to file penalty, so you take that 25% penalty off the table.

2) Writing a check for your back taxes creates a record at IRS that says you actually filed on time and they have to post that $5 or $10 back taxes check to your account.  •   You need to discover quickly whether you owe the IRS more back taxes or you’re due for a refund. If you overestimated your back taxes in April and paid the IRS too much, then you’ll get a tax refund as soon as you file your full 1040 tax return, hopefully long before the October 15th tax extension deadline.•   You may need tax software to discover your IRS debt from back taxes. By October all those discounted tax software boxes offering tax help will be long gone. A tax attorney and tax resolution specialist will have the software you need going back a decade to calculate both state and federal taxes. If you owe back taxes for more than one year, a good tax attorney or tax resolution specialist may be your only shot at getting the tax help you need. •   You need to get your paperwork in order. Filing an October 15th tax extension means you have more time to collect the final paperwork you need. If you have been the victim of a financial crime, a good tax attorney can go back and file amended returns that can drastically improve your back taxes problem. •    You need to act quickly or the IRS will. If you don’t file a tax return by the October 15th tax extension deadline, the IRS may file one for you. If you don’t get tax help from a tax attorney, the IRS may prepare a “Substitute For Return” for delinquent taxpayers. It’s important to file a tax return as well as any prior delinquent tax returns as soon as possible to save money and avoid significant long-term consequences. Get professional tax help from tax attorney so that you get all the tax relief you’re allowed. •   If you owe back taxes for more than one year, all your prior tax returns must be filed to be eligible for income tax relief. All back tax returns must be filed before the IRS will entertain any type of tax settlement.•    You need to realize that this is your last chance. Can you file for an extension past the October 15th tax deadline extension? Not a chance. The IRS will occasionally extend an extension beyond October 15th for a class of people who have suffered a natural disaster. If your home wasn’t destroyed by a hurricane, then your chances of getting a tax extension beyond October 15th are about the same as winning the lottery. The good news is that with an experienced and professional tax attorney or tax resolution specialist, you have a real hope of resolving your back taxes and IRS problems if you act now. I believe there’s tax help for every problem. For a delinquent taxpayer, it’s never too late to resolve your tax debt and avoid IRS penalties. For more information on achieving a tax resolution for your unfiled tax returns or back taxes, visit for a free tax relief consultation or call 866-IRS-PROBLEMS.

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.

October 5, 2016

Missed the Deadline to file your Federal Tax Return?

Filed under: Tax — Tags: , , , , — admin @ 12:48 pm

Take action now by following these guidelines.

Missing the deadline to file your Federal taxes can turn into a financial nightmare if you’re not careful.  Acting now can help you avoid expensive fines, penalties and interest.

Pay Estimated Taxes Immediately

Even if you haven’t completed your tax return, send an estimated payment.  The longer you wait, the more you will owe.  Even if what you end up owing is more than what you send now, you’ll stop the clock on the amount you do pay.  Include an additional 5% in your payment; this is the penalty for not filing your return on time.  This penalty continues to go up each month by another 5% for a maximum of 25%.  That can be a lot of money depending on how much you owe.

You’ll also be hit with a late payment penalty.  This charge starts at .5% and can continue up to 25%.  Again if you’re not sure how much you owe, pay something to avoid accruing much more in penalties.

If you are hit with both penalties – failure to file and failure to pay – in the same month, the IRS may waive part of the fees.  But, you will still owe interest charges on the unpaid amount and as penalties accrue, interest is also charged on the penalty amounts.  Right now the IRS charges around 5% per year on unpaid taxes, so send what you owe as quickly as you can.

If you’re short on cash you can also pay your bill by credit or debit card.  The IRS has authorized two online providers to process payments, but it will cost you a service charge.

File an Extension

If you know you’re going to owe but you’re not quite done with the paperwork, send in Form 4868, Application for Automatic Extension of Time to File.  This extension is only for the paperwork but will automatically extend the deadline to send in your return to August 15th.  Send your estimated tax payment with this form if you can.

Keep in mind; even though there is no penalty for not filing if you are due a refund, you’ll lose that refund if you don’t file within three years of the due date.

Request an Installment Plan

If the reason you haven’t filed is you just can’t pay the tax bill, the IRS may be able to help.   If you owe less than $10,000 you will automatically be accepted into a payment plan.  If you owe less than $25,000 you can make this request online.  Those that owe more than $25,000 must file a Request for Installment Agreement to determine eligibility for an installment plan.

File Quickly

Inevitably you must file that return.  If you are able to pay immediately, use an online e-file provider to file your return and make your payment.  The site will determine your late filing penalties and interest so the appropriate amount is taken out.  Then you won’t have to worry about the IRS knocking on your door because you missed the filing deadline.

May 6, 2014

Small Business Taxes: Are You Ready For The March 15 Deadline?

Filed under: Tax — Tags: , , , , , — admin @ 12:46 am

March 26, 2014

File Your Taxes in USA before the Deadline to Avoid Penalties!

Filed under: Tax — Tags: , , , , , — admin @ 12:46 am

Paying taxes in USA is what you’re not supposed to miss otherwise you’ll end up paying penalties! The tax year ends on the 31st of December and the IRS tax returns need to be filed by the 15th April of the subsequent year. As a US citizen, you need to file USA Tax Return to the IRS before the deadline.There are cases when some of the people in the USA have overpaid taxes. According to the IRS reports, over 80% of the taxpayers get tax refunds. If you file your tax returns electronically and accurately, you’ll get fast tax refund. There are several websites that offer you online tax software you can use for preparing ad filing your return before the deadline ends up.Suppose you’ve earned something above $3650 in 2009 then you’re obliged to file USA tax return to the IRS. And therefore, filing taxes before the deadline is much more important.Preparing and filing a tax return USA is something a tedious work. Dealing with heaps of complicated documents and forms is time-consuming and confusing as well. And for that reason, the majority of the taxpayers prefer tax preparation companies like Tax Brain ( to file their returns accurately. One of the most remarkable advantages of having tax preparation services to work for you is to get your return filed quickly and accurately before the time ends up.There are reasons why Tax Brain USA is one of the finest tax preparation services. TaxBrain is a Web-based tax preparation software program that involves forms-style data entry screens that can help you gather your tax information. TaxBrain is best for wage-earners with few deductions or other tax related issues. If you learn how to prepare your tax return USA using such tax programs, you can file your return quickly and get fast tax refunds within less span of time.

January 26, 2014

Small Business Tax Tips: are You Ready for the January 31 Deadline?

Filed under: Tax — Tags: , , , , , — admin @ 12:46 am

April 15 is not the only critical tax deadline. If you are a small business owner with employees or independent contractors, January 31 is an important tax deadline you cannot afford to ignore.
The end of January is the due date for several payroll-related tax forms and tax payments. Before reviewing them, here’s some good news. Whenever a federal tax deadline falls on a Saturday, Sunday or legal holiday, the due date is automatically moved to the next business day.
Since January 31, 2009 is a Saturday, the due date has been extended to Monday, February 2, 2009. (Perhaps those two extra days will come in handy!) Also keep in mind that to comply with any federal tax deadline, your mailing must be postmarked on or before the due date.
Here are the key federal payroll forms and tax payments due on February 2, 2009:
1. Form 941, Employer’s Quarterly Federal Tax Return. This is the form used to report all employee compensation (wages, salaries, commissions, bonuses, etc) during the fourth quarter, as well as federal income tax withholdings, social security taxes and medicare taxes (both the employee’s withholding amount and the employer’s match).
If the quarter’s total tax (as shown on Line 10) is more than $2,500, then you should have been making payroll tax payments during the quarter according to the IRS payroll tax payment requirements. (See IRS Publication 15 for details on that.)
But if the quarter’s total tax is less than $2,500, you can pay your entire quarterly payroll tax liability with Form 941. Just be sure to include voucher Form 941-V with the return and make your check payable to the U.S. Treasury.
2. Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. This is the form used to report federal unemployment tax, which employers’ must pay (i.e. out of your own pocket) on behalf of each employee. The tax is typically 0.8% of the first $7,000 in wages paid to each employee each year. So the most you pay for any one employee is $56, assuming the employee had at least $7,000 in wages.
The Form 940 is only filed annually. But the 940 tax must be paid at the end of any quarter in which the unemployment tax liability reaches $500. So you should be calculating the tax every quarter to see what your liability is. If it reaches $500, make a payment by the end of the month following the end of the quarter. If it’s less than $500, you carry over the liability to the next quarter.
Most small businesses that have fewer than 10 employees usually don’t have to make a federal unemployment tax payment for quarters 1, 2 or 3. But when the 4th quarter rolls around you will have to pay the entire annual tax liability. If your total annual tax is $500 or less, you can pay it with the Form 940 (be sure to include voucher Form 940-V). If the tax is more than $500, you must pay the tax at your local bank or via the IRS electronic payment system (EFTPS).
3. Form W-2, Wage and Tax Statement. You must give or mail W-2’s to all your employees no later than February 2, 2009. Employers must include Copy B, Copy C and Copy 2 along with the Instructions for Employee. In addition, you must send a copy of all W-2’s to the Social Security Administration by March 2, 2009, along with Form W-3, Transmittal of Wage and Tax Statements.
4. Form 1099-MISC, Miscellaneous Income. The most common use of this form is to report total annual payments to independent contractors (sole proprietors who provided services to your business) of $600 or more. You must send Copy B of the 1099-MISC to the recipient by February 2, 2009. And you must also send Copy A to the IRS by March 2, 2009, along with Form 1096.
Important: Your state probably has payroll tax forms and payments due on January 31 or February 2, so be sure to check with your state’s tax department for details.

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