If your tax return is past due, chances are you won’t get away without paying some penalties. But, by filing the right form, you may be able to mitigate potential financial damage.
Make sure you avoid penalties on a late tax return by using the following three forms. Furthermore, if you file these forms by April 15th, you will diminish your chances of paying a late-filing fee on your tax return.
Each form performs a specific function, whether it is the potential to avoid a fee on a late payment, installment plan, or deferral payments. Taxpayers may only qualify for these forms due to their unique circumstances. Make sure you know the requirements of each form.
If you have failed to file your tax forms on time, it is always best to seek the help of a professional tax resolution lawyer. Companies like U.S. Tax Shield have the industry knowledge and experience required to help taxpayers reduce their debt owed to the Internal Revenue Service (IRS). Contact U.S. Tax Shield today to speak with our tax resolution attorney.
Form 1127 Form 1127 has some strict qualification requirements. If you qualify, you may still face interest payments, but there is no penalty for filing late.
You may be eligible for a 6-month extension if you meet these prerequisites: Tax liability less than $50,000; your AGI less than $100,000 if you’re single, head of your household, a widower, or married filing separately; AGI is less than $100,000 if you’re single, married filing separately, head of household, or a qualifying widower; $200,000 or less if you are married filing jointly; you are experiencing “undue economic hardship” due to things like unemployment.
Form 4868 This is for those filing late returns. Form 4868 provides those who qualify an automatic six-month extension for filing these forms: 1040, 1040EZ, 1040NR, 1040NR-EZ, 1040-PR, 1040-SS, 709.
Form 9465 This is a great form for business owners and the self-employed. If you are someone who may have a hard time paying penalties up front, then Form 9465 may be for you. The 9465 allows taxpayers to establish a monthly payment plan, some terms last more than five years.
To qualify for Form 9465 you must do the following: file Form 1040, pay self-employment taxes, be accountable for a Trust Fund Recovery Penalty, or be in charge of a partnership liability that is no longer operating. If you owe less than $50,000, you can even file online.
Seek the Help of a Professional
As mentioned above, it is always crucial to seek the help of a tax resolution professional. Not only can an expert save you money, they can help save you tons of time and emotional stress.
US Tax Shield provides their clients with exceptional tax resolution attorneys. Our seasoned tax attorneys / tax lawyers and enrolled agents have years of tax resolution experience helping thousands of customers solve their IRS and state tax liability issues. Contact us today to learn more about how we can help you.