What If I Cannot Pay My Taxes On Time

It’s tax time but what while preparing your return you ask yourself, What if I cannot pay my taxes on time? Taxpayers who can’t pay in full should submit their return on time and pay as much as they can. This helps avoid penalties and interest charges. If they still owe a balance after submitting their tax return, they can request an installment agreement online or call 1-800-TAX-1040 to arrange to pay by debit or credit card. Following any of these steps helps taxpayers avoid late filing penalties, interest charges and the possibility of identity theft.

What If I Cannot Pay My Taxes On Time
What If I Cannot Pay My Taxes On Time

One Option is to Obtain a Loan

Most taxpayers can get a loan at a bank or credit union. If you owe $50,000 or less in taxes, are employed and earn income, you can get an installment agreement for up to 72 months.

Payment Plans

The IRS offers payment options to help eligible taxpayers pay their taxes in four easy installments. The IRS also allows taxpayers to spread payments over four installments using the tax bill calculator tool on IRS.gov. Checks, money orders, debit cards, and credit cards are all acceptable forms of payment. You may be able to pay electronically using a bank account or prepaid debit card and IRS Direct Pay.

Ask For a Delayed Time to Pay

If you need more time to pay, the IRS may be able to delay collection until your financial condition improves. However, penalties and interest continue to accrue. Taxpayers can request a postponement by calling the number listed on their notice or 1-800-829-1040.

Dismissal of Penalties

The IRS has several methods to assist taxpayers who are experiencing financial difficulty. Taxpayers who can’t pay in full today may be eligible for a short-term solution, such as an installment agreement or an offer in compromise. In certain situations, the IRS can lower a taxpayer’s penalty amount by using penalty abatement or elimination programs. Taxpayers whose tax debts have been previously rejected by the IRS can participate in the First Time Abatement program.

The Taxpayer Advocate Service’s (TAS) Taxpayer Assistance Order (TAO) program provides options for taxpayers to pay their tax bill by reducing or eliminating the late-filing or late-payment penalties. If applicable, taxpayers should be able to determine if they are due penalty abatement on the IRS.gov web site. Penalties that apply to a specific tax year may be paid by credit card through IRS.gov by entering the amount owed and selecting the “Pay Online” button when accessing the appropriate page.

Offer in Compromise

Before deciding to pay your taxes in full, you may be able to settle them for less through an Offer in Compromise. For example, offers may be accepted for valid concerns about the taxpayer’s ability to pay. Individuals interested in applying can use the Offer in Compromise Pre-Qualifier tool to determine their eligibility. We would be happy to work with you to review your options and explain more about how an offer could help.

If You Can’t Pay The IRS – Here’s What You Need to Know.

Tax Counseling for the Elderly

You may feel good about completing your 2013, 2014 or 2015 Taxes to the best of your ability, but nothing may compare to the satisfaction that can come from helping others do the same. You can make a big difference in the lives of the people in your community by volunteering with programs such as Tax Counseling for the Elderly and Volunteer Income Tax Assistance this tax season.

TurboTax 2015 is a wonderful tax preparation guide, but a lot of people may prefer or need additional assistance. Sponsoring organizations such as TCE and VITA encourage volunteers to join in and assist the elderly and individuals of all ages who may be looking for tax help. You can complete your training online or in a classroom, and tax sites have flexible hours for volunteers and individuals seeking help with their taxes. Here are some great reasons to get involved:

  • No experience required since training is provided.
  • No charge for training materials.
  • Flexible hours.
  • Numerous sites to volunteer.
  • Support programs for military personnel.
  • The satisfaction of knowing that you are making a genuine difference in the financial lives of others.

Tax Counseling for the Elderly

You can sign up at [email protected] by submitting Form 14310 (VITA/TCE Volunteer SignUP) by email and start giving back to your community today through Tax Counseling for the Elderly.

 Tax Counseling for the Elderly
Photo by stevendepolo

Complete Your Taxes Easily And Correctly

Traverse City tax expert Frank Ellis shows how to enter the pertinent information regarding your Taxes into the current year’s IRS income tax return. He points out the many benefits and aspects of the popular TurboTax software. His newly published article takes readers step by step through the process of moving the information they have posted in the previous year’s tax returns to the current returns to be finished and sent off to the Internal Revenue Service.

Frank Ellis shows how to access the details from an online account in TurboTax or from a file that has been saved on an individual’s computer. He reveals TurboTax 2015 specifics so the user can benefit most from the software and obtain the best refund from the Internal Revenue Service that is legal and possible.

2014 Taxes photo
Photo by mleinet

A great benefit of TurboTax software is that there is no need to re-enter information. This way, filing is much quicker, and there is less chance of making a mistake. The user can also transfer information from other files; this is a very convenient automated feature.

Frank Ellis elaborates that TurboTax users really do get larger refunds and that importing tax information from many information sources is made quick and easy. There’s no more looking for paper documents to enter financial details because TurboTax does all this automatically.

Simplicity, security and safety are highlighted in the article. It points out that many taxpayers do not notice or are ill-informed about important money saving tax details. TurboTax shows users the credits, deductions, and filing deadlines that they need to file their taxes efficiently and correctly, getting the largest possible refund.

In addition, Ellis says individuals should invest in a tax refund calculator as this tool estimates the taxpayer’s possible refund. Armed with this knowledge, users can adjust their withholding and spending habits to make sure that tax filing goes as well as possible.

This tax refund calculator is very convenient and takes some of the anxiety out of the filing process. Knowing the approximate amount of a tax refund ahead of time helps people prepare wisely for their financial year ahead of time.

For more information about TurboTax or how to use the software online for this year’s tax season, go to .

Finding Free Tax Tips For Your Taxes

Free Tax Tips

No one wants to make a mistake when filing his or her taxes to the federal government. Unfortunately, filing on your own can be a bit difficult. If you want to file correctly, you probably want to take the time to look at free tax tips. Below are a couple sources of free tax tips for your 2013 or 2014 filings.

One of the best places to start looking for tax tips is always with the IRS (www.irs.gov). Not only is this the official source for tax information in the United States, but its tips are actually quite easy to follow. If you want a bit more information, it might be useful to take some time to look at some of the tax processing sites out there. Sites like TaxAct (www.TaxAct.com) and TurboTax (www.turbotax.com) have a great deal of filing information available even for those who do not choose to use the services. If you want to go straight to a trusted information source for even more, though, you might want to check out CNNMoney (money.cnn.com) for information when it gets closer to tax time.

If you are looking for more traditional sources, large tax processing services like H&R Block tend to have information about filing taxes available around tax time. In fact, it may be possible for you to get a quick class on how to file your own taxes from a similar giant, or even from a local tax accountant. Free classes tend to pop up around January each year, so taking the time to look at these information sources can be helpful.

Using TaxBrain.com Software And Calculators

Using TaxBrain.com Software And Calculators

Filing and preparing taxes each year is a responsibility of all American wage earners.  While it is a recurring obligation, the process of filing and preparing taxes can be pretty complicated considering the complexity of the current tax code.  When filing your taxes, it would be a good idea to take advantage of online tax preparation and guidance services provided by TaxBrain.com. Update: TaxBrain.com Software has been discontinued.

It Takes Taxes and Bonds - NARA - 534022
It Takes Taxes and Bonds – NARA – 534022 (Photo credit: Wikipedia)

Through the use of TaxBrain.com, you will receive a number of different services.  The primary advantage is that you will be able to take advantage of all the current tax code benefits.  While taxes are required every year, deductions and credits that you qualify for could vary considerably from one year to the next.  The software will allow you to input all of your personal information and then will determine what exactly you qualify for, which could end up saving you a lot of money.

Another advantage of using the personal accounting website is that you can be assured that your taxes are compiled and filed correctly.  This can help assure that your annual tax bill is accurate, which could help you avoid fees and other tax penalties in the future.

Beyond paying taxes each year, you should also spend time tax planning for future years.  Through the use of a tax calculator, you will be able to determine what you future year’s tax liability will be.  Based on this information, you will be able to determine better if you should withhold more or less taxes during the year.

TurboTax Sees Glitch, #Fails On Twitter

TurboTax Sees Glitch, #Fails On Twitter

Filing taxes is a stressful task no matter how anyone puts it, and if anything goes wrong during the filing, it becomes a nightmare. That is what exactly happened last month when TurboTax users faced a glitch as the deadline to file federal tax returns loomed.

Day 25-A Taxing Evening
Day 25-A Taxing Evening (Photo credit: Mark Sinderson)

The service run by Intuit was unavailable for approximately an hour for some users during evening, which is considered peak hour for the service. It seemed that all would be well since their problems were resolved and service was issued in less than an hour. That, however, was not the case. During the time the site’s Twitter account kept sending out messages, which, although innocent, the affected users thought were mocking them.

“Dependence isn’t always terrific, but it is at #tax time! Aren’t you curious why? #TaxBreaks #TurboTaxTip,” read a popular tweet. A user was quickly to reply with “#TurboTaxFail” hashtags, adding insult to injury. It did not take too long for users to pile on the account, which was actually designated to send out tips and not help users.

Intuit was quick to notice this, interestingly, and canceled tips and focused on helping their affected customers. Having said that, the damage was already done and users felt disgruntled at how they received no immediate help or notices on Twitter, which is often used by other services to broadcast down times and errors to their users.

As it stands right now, the company has learned from its mistake and is sure to assign someone to manually handle their Twitter account.