The IRS has sent out a reminder to anyone who filed for a six month extension, that in spite of the appropriations lapse (government shutdown), the due date to file those tax returns is still October 15th.
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According to the IRS, many of the more than 12 million taxpayers who requested an automatic six-month extension this year have yet to file. The following is important information the IRS wants taxpayers to be aware of:
There are some exemptions to the October filing date:
- Members of the military and others serving in Iraq, Afghanistan or other combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.
- People with extensions in parts of Louisiana and Mississippi affected by Hurricane Isaac also have more time, until Jan. 11, 2013, to file and pay. Conversely, people with extensions in parts of Colorado affected by severe storms, flooding, landslides and mudslides also have more time, until Dec. 2, 2013, to file and pay.
Make Sure to Check Tax Benefits – the IRS encourages taxpayers to take a moment to see if they qualify for often-overlooked credits and deductions such as Earned Income Tax Credit or the American Opportunity Tax Credit or other educational tax benefits. Tax expert, Kay Bell agrees reminding taxpayers not to get in too big a hurry to file because they may miss some often overlooked tax credits and deductions that reduce tax bills dollar-for-dollar. In her Bankrate article: 10 commonly overlooked tax breaks, Bell lists the following as areas taxpayers should check to see if they qualify for savings: non-cash charitable gifts, moving expenses, job-hunting costs, military reservists travel expenses, child-care payments, mortgage refinancing points, myriad medical costs, retirement account contributions, educational expenses and energy-efficient home improvements.
E-file – Quickest Way to File and Receive Refund – Taxpayers can file their tax returns electronically or on paper. However, the IRS urges taxpayers to E-File touting its speed, accuracy and security – particularly helpful for folks who are rushing to meet the October 15th deadline. Everyone can use Free File with incomes of $57,000 or less, or online fillable forms, the electronic version of IRS paper forms available to taxpayers at all income. VERY IMPORTANT TO NOTE:
- Payments accompanying paper and e-filed tax returns will be accepted and processed as the IRS receives them.
- Tax refunds will not be issued until normal government operations resume.
- IRS operations are limited during the appropriations lapse, and live assistants on the phones at Taxpayer Assistance Centers are unavailable. However, IRS.gov and most automated toll-free telephone applications remain operational.
- Tax software companies, tax practitioners and Free File remain available to assist with taxes during this period.
Fresh Start Initiative Helps Struggling Taxpayers – In many cases, those struggling to pay tax debt qualify for one of several relief programs, including those expanded earlier this year under the IRS “Fresh Start” initiative.
The IRS has made it possible for taxpayers to set up their own payment agreement online in a matter of minutes. Those who owe $50,000 or less in combined tax, IRS penalties and interest can use the Online Payment Agreement to set up a monthly installment payments (like a car payment) for up to six years or request a short-term extension to pay. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS.
Owe Back Taxes? Consult a Qualified Tax Resolution Specialist about the Best Way to Pay - Sometimes smart people rush to get the IRS off their backs and “self-finance” what they owe in back taxes. In some cases that may not be the best choice as the fees associated with credit cards can be very high. Hiring the services of a certified tax professional can help you make an informed decision for the best way to pay their tax bill. Once people are shown their financing options they are sometimes surprised that settling their IRS tax debt directly with Uncle Sam makes better sense.
