What to Do if Your Family Misses the Tax Deadline

The image source is Envato.

Tax payments for families is a must according to the IRS set deadline from which many families may end up missing because of whichever circumstances that may arise. In this article, I will guide you on what to do in case you miss the set on the 15th deadline and what exactly to do to avoid paying the hefty fines imposed to be paid on defying families. Though you may still be required to pay a certain amount but not as much. If your family is paying the tax for the first time, certain exceptions may be given to the family. That may be possible if the family complies with the regulation and guidelines given by the IRA.

Request an Extension

You can request an extension under the circumstance that your family cannot pay before the due date. The request must be sent on the date before the deadline elaborating on why your family cannot meet the set deadline as required by the IRS. Some of the reasons that an extension may be given are;

1. When your family was given misleading or inaccurate data.

2. When your family is bereaved or faced with a disaster.

3. When your family was out of the country during the season.

4. When there was insufficient time due to a busy schedule

If you also met all the IRS criteria and your penalty abatement is denied, you can request an appeal. It's not uncommon that the administrators made a mistake the first time around.

Make Use of the First Time Penalty Abatement

The IRS makes billions of dollars yearly from penalties. But in some cases, you may be eligible for penalty waivers. Let's say your family has been vigilant and always make tax payments on time, then this one time for some reason or the other, you and your family weren't able to, and you incur a penalty. That implies that it's your first-time penalty, and that means you can get relief.

But for that to happen, there are certain specific eligibility reasons the family has to meet. For one, establishing a rational reason for not meeting your family tax obligations can be a good start. The IRS will then weigh any reason if your family fails to meet the deadline. Reasons ranging from disasters such as fire to helplessness can be reasons for relief. But it has to be a legitimate reason. If your family's reason for not paying your taxes is due to a lack of funds, it's not a reasonable cause. The family will not get relief. Here are some of the criteria's that your family has to meet to be eligible for an abatement waiver;

1. You must show that you were not required to file a tax return for prior years.

2. You did not accumulate any substantial penalties for the past three years before the current penalty.

3. You must show that either you filed for an extension or filed any returns that may be due.

4. You should also be able to show that you made arrangements to pay the taxes that are due or you already paid them.

You should note that the penalty will continue to grow until you make an effort to pay the full amount due. For your family to get an edge for a better chance at getting an IRS first time penalty abatement, try paying the amount you're due before filing for a waiver. If and when your request is granted, your penalty is either removed or reduced. And the interest accrued is also removed or reduced.

Engage the Services of an Attorney

Tax penalties can accumulate to a lot of tax arrears, mostly from the interests of the penalty. The interest will continue to grow until you pay what's due. It can and will affect your family's finances if not dealt with as soon as possible. A skilled attorney can also come in handy in helping you analyze your options for pursuing penalty relief. A tax lawyer can assess the circumstances that led to you getting a penalty. They can then be able to determine if you're eligible for relief. Tax lawyers can help people seek a penalty abatement.

Conclusion

Although it's common to miss your tax deadlines, it's essential to act on it fast. Your family can go into bankruptcy if the tax arrears and penalties continue to accumulate. You can start by involving a tax lawyer for consultations. They can then help you get a penalty abatement. If, due to unforeseen circumstances, you are aware that you will fail to meet the deadlines, then file for an extension before the due date.