This year, taxpayers had to navigate the new tax law and many found themselves facing an unwelcomed surprise. Instead of a tax refund, taxpayers throughout the country found themselves facing an unexpected tax bill. As a result, some taxpayers filed their tax returns but were unable to pay the bill.
Filed but no payment? Expect a bill.
The Internal Revenue Service (IRS) issued a publication stating it will send out bills to taxpayers who failed to pay their tax bill by the April 15 deadline. The mass of mailings is slotted to go out in June and July.
Taxpayers who receive a bill have options. Ideally, the IRS pushes taxpayers to make a payment. If possible, this is the best option as it will reduce the risk of future penalty fees. However, those who cannot pay the bill can consider the following:
- Installment agreements. An installment agreement is basically a long-term payment plan with the IRS. Those who qualify can repay the agency in a time period that spans 120 days or more. This can result in a more manageable option to pay off the tax bill for those who cannot make a lump sum payment.
- Offers in compromise. This option involves the taxpayer negotiating a lower payment with the IRS. It is available for taxpayers who simply cannot afford the proposed tax bill.
These are just a few options to review when facing tax debt. The attorneys at Goldburd McCone can review your situation and discuss these and other options that can help you resolve your tax debt.