On Nov 5th, the Internal Revenue Service (IRS) urged any eligible self-supporting college student who doesn't need to file a tax return to register by November 21 so they can receive an Economic Impact Payment before the end of the year.
Federal beneficiaries who didn't register to receive $500 per child payments earlier this year need to register using the non filers tool on the IRS website before the 3 p.m. Eastern November 21 extended due date to receive an Economic Impact Payment, if eligible.
A man who did not file tax returns for several years in a row pleaded guilty to evading his income taxes on March 13, 2020.
A taxpayer who is experiencing financial hardship and is struggling to pay for basic living expenses, qualifies for Currently Not Collectible status. In other words, when a taxpayer has no available equity in assets and his or her income is not sufficient to cover their IRS allowable expenses, the taxpayer would be deemed âuncollectibleâ, or âCurrently Not Collectibleâ (CNC). When a taxpayer is "uncollectible" IRS holds off levy action against the taxpayer's income or assets.
We know the story: things are tight financially, so you either (1) do not file the tax return, or (2) file the return but donât pay the balance due. But do not worry, you tell yourself, next year will be better. Now it is 2-3 years later and a letter arrives from the IRS, and the threats start, and maybe it has even gotten to the point of actual levy and seizure activity. Now the IRS is wreaking havoc on your financial life and you simply do not know what to do.
Dont worry! All is not lost! You can request unmasked income transcripts from the IRS either by phone or going online and using Get Transcript tool on the IRS website.
High income taxpayers are those who received income in excess of $100,000 during a tax year. In February of 2020, IRS announced that it was stepping up efforts to visit high-income taxpayers who have failed to file one or several years of their tax returns.
People sometimes fall off track with their tax filings because of life circumstances such as health problems, passing away of loved ones or financial hardship. The IRS doesn't penalize people for late filings if there is reasonable cause for non-compliance.
However some people frequently don't file their tax returns. What they don't realize is that failure to file a tax return is a serious problem that can come back and haunt them.
Canât pay your taxes? Donât fret. You have options!
It can be a stressful experience preparing your taxes and filing them. It can be even more stressful however, if you make these mistakes that land you into tax trouble. It's important to remember that if you make mistakes that are serious enough, you might end up triggering an audit of your tax return or owe more in back taxes.