Sixty and Single
  • Home
  • Workshop
  • Newly Single
  • Events
  • ARTICLES
  • My Story
  • Resources
  • Home
  • Workshop
  • Newly Single
  • Events
  • ARTICLES
  • My Story
  • Resources

Owe back taxes? Deal with it. You may get a discount

1/1/2018

 
"It's a privilege to pay taxes. Yeah! It's not a political question folks. We have to pay for stuff." - Lewis Black. Stand-up comedian. (1948 -    )

BY JULIA ANDERSON
There are many situations that can put you behind in paying your federal U.S. income taxes. An unexpected major health issue could suck up all your savings and put you on the verge of bankruptcy. Maybe you lost a job and are not back on your feet.

Or you are self-employed, business has been slow, and you are behind in sending quarterly estimated self-employed federal tax payments to the Internal Revenue Service. You may have children or grandchildren who are facing a federal tax issue. 

Whatever the circumstances of “getting in trouble” with the IRS, you (or family members) need to deal with it. These circumstances all require a tax return. It is no use hiding out.

If you ignore the issue, it only gets worse because “back taxes” and late payment penalties pile up.

“People need to start the dialogue as soon as possible,” David Tucker, IRS spokesman in Seattle, told me. “Let the IRS know that you have an intent to pay. We will work with that individual to resolve the situation. When there’s no communication…that’s the problem,” Tucker said.

He recommends that if you face a complex tax situation, hire a tax professional who can walk you through the process of sorting out and catching-up.  A tax pro can tell you what documentation you will need before meeting with the IRS, what you will need to claim certain tax-deductible expenses.

“From the standpoint of the IRS, we want the (tax-paying) process to be as easy as possible,” Tucker said. “If you haven’t paid taxes for a number of years, we want to work with you. Think of it as a collaboration rather than an adversarial situation. But don’t ignore IRS notices that may be coming in the mail. Call us,” he said.

Doing the research
If you think you are in tax trouble, make an online visit to IRS.gov. Read up on the IRS “Offer in Compromise” tax debt program that may allow you to settle your tax debt for less than the full amount you owe. This is about as painless as it can get if you owe back taxes.

Low-income? Still file.
Meanwhile, if you are in a low-income bracket, you may think you don’t need to file a federal tax return. Reconsider because you might be leaving money on the table.

“People should look at filing a return regardless of whether they owe any taxes,” Tucker said. “They should go through the process to see if they qualify for a refundable credit or other tax credits.”

For example, the Earned Income Tax Credit, applies to individuals (and couples) who work but don’t earn much. The average EITC “refund” is $2,400.

As well, you may qualify for a Child Tax Credit or the American Opportunity Tax Credit, which provides incentives for going to college.

Who must file? Just about everyone.
Tucker explained that as a single taxpayer under age 65, you must file a return if your gross income (in 2017) is at least $10,350. If you are 65 or older, you must file if your gross income is $11,900 or more.


GETTING HELP:
If you owe back taxes contact the IRS: click here.
For more about the Offer to Compromise program, click here. 
Owe Taxes? These Tips can Help. click here

In Portland, contact the IRS Tax and Business Center at 1220 SW Third Ave. in the Federal Building in downtown Portland. Make an appointment in advance for a face-to-face meeting by calling 844-545-5640. Be prepared to explain your situation. Ask what documentation you should bring to the meeting.

If you qualify for low-income tax credits: You can get FREE help during the tax filing season by contacting a volunteer with the Income Tax Assistance Program sponsored by the AARP Foundation. Search online for AARP tax-aide locations near you.

FOR MORE:
5 Tips for People who Owe Taxes, click here.

Comments are closed.
    Picture

    Julia anderson

    I meet women all the time who face job and money transitions and who want to do them right. It’s about building confidence and taking charge of  the future.  This is your money.  No one cares more than you do! 

    Archives

    February 2023
    September 2022
    July 2022
    February 2022
    January 2022
    December 2021
    November 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    February 2021
    January 2021
    November 2020
    October 2020
    September 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    April 2019
    March 2019
    January 2019
    December 2018
    September 2018
    August 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    July 2017
    June 2017
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    February 2011

    RSS Feed

    Categories

    All
    Women: Retirement Planning
    Women: Saving And Investing

Editor's note: All information provided at sixtyandsingle.com is for informational purposes only. Sixtyandsingle.com makes no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions in this information or any damages arising from its display or use.

    Follow by email

Submit