Millions to receive notices from the IRS of unpaid taxes

0

TAMPA, Fla. — Taxes were due about two months ago, which means the IRS will refund you or ask you to pay and tax experts say it’s extremely important to watch the mail for any notices this year.

In 2021, the US bailout provided financial relief to many struggling during the pandemic.

He gave tax breaks to people who pay student loans, reduced taxable income and wages for low-income people, increased the child tax credit and paid it earlier, and some even got a third stimulus check.

But all of these changes have made filing taxes much more complicated, so people may find they owe more money.

They will find you, they will find your assets, they will find your account, your savings accounts, your checking accounts, even your income, they will take and pledge that and they will get their money. They’re very good at it,” said Mark Steber, director of tax information at Jackson Hewitt Tax Service.

There’s been a lot of publicity recently over the past two years since the pandemic about how the IRS is kind of slowing down IRS audits and notices,” Steber said.

He explained that this is always true, but not for the Notice CP14 of the balance due for unpaid taxes.

“They are not an audit, note they are not an evaluation,” he said. “They’re just the fact that you had income that you have to tax and in our system you don’t show that all your taxes have been paid, so by law in 60 days they have to let you know you’re not not fully paid.”

Millions of these reviews are going out right now. Once received, time is running out, with approximately three weeks to respond.

But Steber doesn’t advise immediately putting a check in the mail to the IRS. It can be something as small as leaving out information like a W-2 side job, and you might not owe any money.

Over the years, more and more people are filing their own taxes online, which can easily lead to errors.

A electronic file table shows the increase in e-filings over the years, from around 80% in 2012 to 95% in 2021.

Electronic file

Steber added that there are also penalties for which you can seek forgiveness, so it is important to contact the IRS office immediately and not postpone it.

It adds up very quickly. I’ve seen many cases in my career where the penalties, interest and costs to fix it are far higher than the interest or taxes would have been if you had paid it up front and owe it .

While interest is currently 4% per year, accruing daily, penalties can be painful, including:

  • 25% default
  • 25% underpayment
  • 25% reporting failure

“You shouldn’t ignore it and you should understand it and you should get someone who’s trained and experienced to explain it to you if you’re not comfortable yourself,” Steber advised.

Additionally, although Florida has no income tax, many people moving to the Sunshine State during the pandemic still have assets or income in other states, which can further complicate matters. taxes.

If you cannot pay the full amount due, you can request a payment plan (including installment agreements).

In case of financial difficulties, you can also contact the Temporary delay in the collection process.

Steber said 2022 could also be a complicated fiscal year as many pandemic tax breaks have come to an end. He suggests doing a six-month check with a tax office to make sure you’re on track to not owing more money at the end of the season.

The IRS also has a Withholding Tax Estimator which estimates the withholding amount of your federal income tax and can help you perform a “payroll check”.

Share.

Comments are closed.