Late Payment Relief & IRS Debt

Last updated on March 21, 2022

Taxpayers should apply for extension of time to file their tax returns if they are not able to make the April 15^th deadline. Tax returns filed after the deadline will attract penalties, as well as interest charged by the IRS for the failure to file on time.

This year, the IRS is providing relief from penalties for taxpayers who file forms that are only available after January. All forms that were delayed until February or March, mainly due to the January enactment of the American Taxpayer Relief Act, will be covered under this relief. Details of which taxpayers qualify can be found on this IRS page.

IRS Tax Debt                         

It is easy to get into IRS debt if taxpayers postpone their tax payment. If taxpayers file for extension of time, they may safely file their taxes after the deadline. However, if taxpayers miss the deadline without an extension, they will need to either pay the entire debt amount to the IRS in full, or apply for an IRS debt payment plan.

IRS Debt Resolution

It is in the best interest of taxpayers who already owe the IRS to file their tax returns as early as possible, to avoid complicating their case. It is only in instances of unavoidable circumstances that a taxpayer can file for an extension when they owe the IRS.

When taxpayers have missed the filing deadline, they are encouraged to contact the IRS for payment of taxes. The sooner the debt is paid, because of interest that keeps accumulating with time, the easier and affordable it will be.

With the deadline for filing taxes a few weeks away, it is wise for taxpayers to apply for an extension of time to file if they know they will not be able to file taxes on time. For IRS debt resolution, they may consult a tax lawyer or a tax service to help them resolve their tax debt through negotiations with the IRS.