It’s the time of year when many Georgia residents are waiting for their 1099 forms to come in the mail so they can prepare their tax documents for the Internal Revenue Service (IRS). For some people, the process of filing tax returns is quite basic and simple. Others have complex issues that can make the process stressful. There are also many people who have unpaid taxes, perhaps for several years counting. If you’re in this category and want to resolve the issue, there are several things you can do.
Perhaps you have not filed a tax return because you’re not sure if you’re required to do so. The IRS website has a page called “Do I need to file a tax return?” that can help you find the answer to your question. Unpaid taxes can become a serious legal problem, which is why it’s best to seek clarification of federal, state and local tax laws and do whatever is necessary to comply.
Failure to file penalty for unpaid taxes
You’re at risk for failure-to-file penalties if you owe taxes and the due date or extension date (if the IRS granted you one) has passed. If you have a legitimate reason for having unpaid taxes, you can discuss the issue with the IRS, hoping to avoid a penalty. The government may grant penalty waivers for undue hardship and other reasonable causes regarding unpaid taxes.
Be prepared to pay interest
If you have unpaid taxes and are working to resolve the issue, you’ll want to be aware that you must pay interest on the amount that you owe. This is true, even if the IRS has granted you an extension on time. In fact, if you incur a penalty for failure to pay, you will also owe interest on the penalty fee.
Unpaid tax problems won’t go away on their own
Trying to resolve tax issues can be a complicated and stressful process. You can simplify things and alleviate stress by seeking guidance and support from someone who is knowledgeable about tax laws, as well as navigating the IRS system. If you’ve not been able to pay your taxes due to loss of income, a health crisis, divorce or other life event, there may be options available to avoid penalties and map out a plan to resolve your debt.
The good news is that you do not have to handle such problems on your own because support is available. You should not hesitate to reach out. You’re not the only Georgia resident who has encountered legal problems regarding unpaid taxes. Options may be available to help you resolve the issue.