Many Massachusetts residents likely let out a sigh of relief when they finally filed their tax returns. For some, that relief may have been short-lived as they received a notice from the Internal Revenue Service about an audit. Before panicking, it is important that individuals understand that not all tax audits are the same and that some can be easy to resolve.
The stress that comes along with having tax debt one cannot pay can be overwhelming. Unfortunately, that stress is something numerous Massachusetts residents are feeling right now as many are struggling financially -- for various reasons. The last thing anyone wants is to increase how much they owe the government by accruing interest, fees and other penalties for failing to pay their taxes. Thankfully, relief options are available to those who end up with tax bills they cannot afford to pay at all or all at once. An Offer in Compromise is one such option.
At tax time, individuals here in Massachusetts and across the country are required to report all income received for the particular tax year. The IRS refers to this as voluntary disclosure. It applies not only to domestic accounts but also to foreign bank accounts.
Most Massachusetts residents would agree that they do not want to owe money to the government. Some people will avoid that possibility by not even filing their taxes. The problem with that is that when people have unfiled tax returns, they could fail to receive refunds or end up on the IRS's radar for unpaid taxes. While one of those options may not be so bad, failing to meet this financial obligation could prove expensive.
Massachusetts residents probably do not like owing money to anyone, but unfortunately, it seems to be a fact of life, especially during the current circumstances. If you find yourself in this predicament, you may owe back taxes along with other debt you cannot pay, and you may have questions about taxes and bankruptcy and wonder if it could help in your situation. The problem is that you heard that taxes cannot be discharged through bankruptcy, but is that always the case?
Many Boston residents have a difficult time meeting their financial obligations, especially during these uncertain times. One of those obligations may include the inability to pay taxes. It may be possible to receive relief from this burden through tax amnesty.
There is no way around the fact that the Internal Revenue Service has a great deal of power. When it comes to tax collection cases initiated against people across the country and here in Massachusetts, the agency can do more than just assess penalties and interest. The IRS can even conduct criminal investigations that could threaten the freedom of the taxpayers in its sights.
Like people across the country, the last thing most Massachusetts residents want to do is end up on the radar of the IRS. Of course, the agency does not necessarily have to have a reason to begin an audit, but taxpayers certainly do not want to give it one. Unfortunately, some situations could lead to tax audits if filers are not careful.
It is a new year, and April 15 will creep up on many Boston residents before they know it. Are you dreading tax day because you have unfiled tax returns that you need to address? You may find that enlisting some assistance could help take the sting out of making up for lost time.
Most people across the country, including many here in Massachusetts, do not want to check their mail and see an envelope from the IRS. Rarely are these letters good news. Instead, they are often notices indicating that something is wrong or that the individuals receiving them are subject to tax audits.