Author: Rick Young
Source: articledashboard.com
Most taxpayers have already filed their income tax returns. But for the more than 8.5 million Americans who have filed for an automatic extension, the deadline is just around the corner.
From needing additional assistance to not having all the proper documents, there are various reasons why people ask for extensions, of no later than Oct. 15, on filing their taxes. But whatever the reason, you must know what this extension entails.
"It is important to remember that the extension is only to file your return. It does not extend the time to pay your taxes," said Ralph Havens, an enrolled agent and director of licensed taxpayer representatives at JK Harris & Co. LLC, one of the nation's largest tax resolution firms.
The longer payment is delayed, the more you'll be in debt. If you owe the Internal Revenue Service, it not only can charge you interest on the amount due, it also can levy your bank account, garnish your wages and seize your assets in order to collect.
For people who have not paid their taxes for a number of years, if they meet the qualifications and requirements, Havens recommends considering an Offer in Compromise. Also known as an OIC, this program is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax liability. The IRS accepts OICs when it is unlikely that the tax liability can be collected in full.
Talking with an expert is often the best strategy when looking to clear up tax debt. JK Harris, for example, utilizes former IRS agents, certified public accountants, enrolled agents and attorneys to help taxpayers understand and resolve their tax debt by preparing OICs, negotiating the release of wage garnishments, lifting property liens, having penalties and interest forgiven or setting up affordable installment plans. Experts at JK Harris also can assist individuals who need help preparing their taxes or need support for an IRS audit.
