In just a few weeks, the deadline for federal tax returns will arrive. With the new changes in tax laws, it may be difficult for many in Massachusetts to know what to expect when they get to the final calculation. Many who typically receive refunds may end up owing the IRS, and others who typically owe may be shocked if their bill is much higher than usual. This may cause even more anxiety if the taxpayer does not have the means to pay what is owed.
Fortunately, the IRS offers numerous options for repaying a tax debt. Taxpayers who cannot pay the full amount are advised to file their tax returns by the deadline anyway and pay as much as they can at that time. Additionally, submitting a Form 1040-V will notify the IRS that the taxpayer intends to pay the balance within 45 days, and the IRS will subsequently respond with a bill for that amount plus late fees.
For those who need more time or owe considerably more than they can pay, they may need to explore alternate solutions. For example, the IRS offers various installment plans to meet different eligibility requirements. Taxpayers who are financially overwhelmed by their bill may also seek an offer in compromise, which asks the IRS to consider accepting a lower amount in full payment for the debt owed.
Because tax matters are often delicate and place a great deal at stake, it is easy to feel intimidated. Additionally, the ever-changing tax laws often make the preparation of even the most basic tax return complicated and confusing. Seeking the assistance of a skilled Massachusetts tax attorney is a wise move whenever one is dealing with matters involving the IRS or the consequences of tax debt.