The October 15 Extended IRS Tax Deadline is Approaching: What if You Aren’t Ready?Articles/News, Offshore Account Update
Posted on September 30, 2021 | Share
For U.S. taxpayers who requested an extension back in May, the October 15, 2021 extended filing deadline is fast approaching. But, what if you still aren’t ready to file your returns? Or, what if you can’t afford to pay what you owe the IRS for the 2020 tax year? New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:
What are Your Options if You Can’t Meet the October 15, 2021 Extended Deadline?
As the IRS notes, “People who asked for an extension should file on or before the extension deadline to avoid the penalty for filing late.” If you don’t meet the October 15, 2021 deadline, not only can you face penalties, but you may also run the risk of facing an IRS audit. Keep in mind, even though you may have received an extension to file your federal income tax returns, you were still required to pay your federal income taxes by the May 17, 2021 deadline. So, if you haven’t paid your taxes for the 2020 tax year, you are already behind.
Regardless of whether you need to file your returns, pay your taxes, or both if you are unable to timely meet your obligations to the IRS you should consult with a New Jersey tax attorney promptly. Depending on your individual circumstances, your options may include (among others):
- Submitting an Offer in Compromise – Submitting an offer in compromise (OIC) affords the opportunity to resolve your tax debt without paying the full amount you owe. Submitting an OIC is not easy, and not all taxpayers qualify, but it can potentially be a good option if you have fallen behind on what you owe the IRS.
- Negotiating a Settlement Agreement – Negotiating a settlement agreement with the IRS similarly affords the opportunity to reduce your tax liability and get a fresh start. If you are eligible, a New Jersey tax attorney may be able to settle your tax debt for just a fraction of what you owe.
- Making a Voluntary Disclosure – Voluntary disclosure is another option for avoiding unnecessary interest and penalties. However, there are strict conditions for making a voluntary disclosure, and voluntarily disclosing tax law violations to the IRS can be very risky if you don’t do it properly.
These options are all very different from one another. They are available under differing sets of circumstances, and they have differing implications for taxpayers. A New Jersey tax attorney can help you evaluate your options and choose the best path forward.
Speak with New Jersey Tax Attorney Kevin E. Thorn, Managing Partner of Thorn Law Group
In any case, it is far better to address your tax problems proactively rather than waiting to see if you hear from the IRS. If you have questions or concerns, we encourage you to contact us for a confidential consultation. To schedule an appointment with New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, call 201-355-8202, email firstname.lastname@example.org or send us a confidential message online today.