Offer in CompromiseSome taxpayers qualify to settle their tax bill for less than the full amount due, through an Offer in Compromise. There is a $205 non-refundable OIC application fee; however, it is generally waived for individual low-income taxpayers. Offers require a partial payment of the offer amount except for offers filed based on doubt…
Penalty reliefSome taxpayers qualify to have their late-filing or late-payment penalties reduced or eliminated. This is done on a case-by-case basis, based on reasonable cause. Alternatively, where a taxpayer has a history of compliance, the IRS can typically provide relief under the First Time Abatement program. Taxpayers should review the Penalty Relief page of IRS.gov…
Delayed collectionIf the IRS determines a taxpayer is unable to pay, it may delay collection until their financial condition improves. However, the total amount owed will still increase because penalties and interest continue to accrue until the taxpayer pays in full. Taxpayers can request a delay by calling the phone number on their notice or…
Online payment plansMost individual taxpayers qualify to set up an online payment plan with the IRS, and it only takes a few minutes to apply. Applicants are notified immediately if their request is approved. There is no need for them to contact the IRS for a payment plan or an installment agreement. The agency generally…
For most individual taxpayers the tax filing and payment deadline is Monday, April 18, 2022. Those who need more time to file can request an extension to file. Taxpayers must request an extension to file by April 18, or they may face a failure to file penalty. This extension gives them until October 17 to…
There is a virtual currency question at the top of Form 1040, Form 1040-SR and Form 1040-NR. It asks: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” All taxpayers filing Form 1040, Form 1040-SR or Form 1040-NR must check one box answering…
If you have not filed a federal tax return and you are due a refund, you have up to three years to file and claim your refund. For 2018 tax returns, you have until April 18, 2022 to file and claim your refund. Unclaimed income tax refunds totaling almost $1.5 billion may be waiting for…
Here are some of these special tax benefits: • Combat pay exclusion: If someone serves in a combat zone, part or all of their pay is tax-free. This also applies to people working in an area outside a combat zone when the Department of Defense certifies that area is in direct support of military operations in…
Do Not Get Scammed. The IRS will never: Send text messages or contact people through social media to get personal information or collect a tax debt. Demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Threaten to immediately bring in local police or other law…
People who need to reconcile advance child tax credit payments or claim the recovery rebate credit will need information about 2021 payments when they file. These individuals must have the total amounts of advance child tax credit payments to receive the remainder of their child tax credit and the amount of their third Economic Impact Payment…
