If you don’t qualify for the IRS Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you more time to pay off your tax debts.
Unfortunately, penalties and interest will continue to be charged to your outstanding balance as you pay off the debt. You are required by law to pay the interest on your tax debt.
Frequently Asked Questions
What should I do if I can’t pay my tax bill in full?
If you can’t pay your tax bill in full, you can apply for an installment agreement with the IRS. This allows you to pay your taxes over time. It’s important to contact the IRS as soon as possible to avoid penalties and interest.
What happens if I file my taxes late?
If you file your taxes late, you may be subject to penalties and interest on any unpaid taxes. The penalty for filing late is typically 5% of the unpaid taxes for each month or part of a month that your return is late, up to 25% of your unpaid taxes.
What should I do if I receive a notice from the IRS?
If you receive a notice from the IRS, don’t panic. Read the notice carefully to understand the issue, and follow the instructions provided. Often, it’s a simple request for more information. If you disagree with the notice, you can contact the IRS or seek help from a tax professional.
How can I avoid an audit?
While there’s no guaranteed way to avoid an audit, you can reduce your chances by ensuring your tax return is accurate and complete. Double-check for errors, report all income, and keep detailed records and receipts to substantiate your deductions.
Can I deduct my home office expenses?
Yes, if you use part of your home exclusively and regularly for your business, you may be able to deduct home office expenses. The IRS allows for a simplified deduction method or an actual expense method, depending on which is more beneficial for you.
Can I claim a deduction for charitable contributions?
Yes, you can claim a deduction for charitable contributions if you itemize your deductions. Ensure that the charity is a qualified organization, and keep receipts or acknowledgment letters for donations. Contributions of cash or property may be deductible, subject to certain limits.
Our Mission
Founded by a law enforcement veteran, we are committed to optimizing your deductions, offering year-round tax advice, and delivering powerful audit representation.
Our dedication to ongoing education ensures that you receive the most current and comprehensive tax strategies, helping you secure the financial benefits you deserve. At PoliceTax, we stand as your trusted partner, always ready to back you up.
