What to do if you can't pay your taxes

by Carol in CA Sun Apr 03, 2011 1:39 am

What to do if you can't pay your taxes

By Sandra Block USA Today

http://www.usatoday.com/money/perfi/taxes/2011-03-31-trouble-paying-taxes.htm?csp=34money&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+UsatodaycomMoney-TopStories+%28Money+-+Top+Stories%29

by mrgolf Sun Apr 03, 2011 2:12 am

Carol in CA wrote:What to do if you can't pay your taxes

By Sandra Block USA Today

http://www.usatoday.com/money/perfi/taxes/2011-03-31-trouble-paying-taxes.htm?csp=34money&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+UsatodaycomMoney-TopStories+%28Money+-+Top+Stories%29

But even if your bank account is bare, you have options. First and foremost, you should file your tax return, even if you don't have a dime to your name. The penalty for failing to file is 5% of the unpaid tax for each month the return is late, up to 25% of the amount owed, plus interest.
If you file your return without paying the balance due, the IRS will charge a late payment penalty, but that penalty is only one-half of 1% a month, says Robin Christian, senior tax analyst at Thomson Reuters.

by Carol in CA Sun Apr 03, 2011 2:51 am

mrgolf,

Thanks for supplying more info for this article.

by kman Sun Apr 03, 2011 8:40 am

Here is some add''l info on filing taxes posted by someone a few months ago and I saved it in my word file.

As you know, the $2,400 exemption on unemployment benefits was not carried over for the tax year 2010. Because of this, many people who received these benefits may find themselves owing money when they file their tax return this year.

Here is some helpful information from the Internal Revenue Service on what you should do before the April 18, 2011 deadline for filing your individual return.

1. Be sure to file your Individual Return ON TIME! Failure to do this will add penalty fees, in addition to interest charges. You can find the tax return form you need to use, depending on your circumstances, here:

www.irs.gov

2. Complete Form 4868, Application for Extension of Filing (see below) and return that to the IRS BEFORE April 18, 2011.

3. The late penalty will not be charged if you can show reasonable cause for not paying on time. Attach a statement to your Individual Tax Return (form 1040, 1040A, 1040EZ, etc.) and fully explain the reason for your hardship. Do not attach this statement to Form 4868, Application for Extension of Filing!

Instructions for filing Form 4868, Application for Extension of Filing:

http://www.irs.gov/formspubs/article/0,,id=98155,00.html

Form 4868 - Please see Page 2 for additional information regarding Late Payments

http://www.irs.gov/pub/irs-pdf/f4868.pdf

by Guest Sun Apr 03, 2011 1:45 pm

Good info and perfect timing, thanks!

by Phillymg Sun Apr 03, 2011 1:57 pm

kman wrote:Here is some add''l info on filing taxes posted by someone a few months ago and I saved it in my word file.

As you know, the $2,400 exemption on unemployment benefits was not carried over for the tax year 2010. Because of this, many people who received these benefits may find themselves owing money when they file their tax return this year.

Here is some helpful information from the Internal Revenue Service on what you should do before the April 18, 2011 deadline for filing your individual return.

1. Be sure to file your Individual Return ON TIME! Failure to do this will add penalty fees, in addition to interest charges. You can find the tax return form you need to use, depending on your circumstances, here:

www.irs.gov

2. Complete Form 4868, Application for Extension of Filing (see below) and return that to the IRS BEFORE April 18, 2011.

3. The late penalty will not be charged if you can show reasonable cause for not paying on time. Attach a statement to your Individual Tax Return (form 1040, 1040A, 1040EZ, etc.) and fully explain the reason for your hardship. Do not attach this statement to Form 4868, Application for Extension of Filing!

Instructions for filing Form 4868, Application for Extension of Filing:
http://www.irs.gov/formspubs/article/0,,id=98155,00.html

Form 4868 - Please see Page 2 for additional information regarding Late Payments

]http://www.irs.gov/pub/irs-pdf/f4868.pdf

What to do if you can't pay your taxes 708464

by Carol in CA Sun Apr 03, 2011 3:45 pm

kman,
Excellent information.
Thank you for posting this.
How on earth does the government expect 99ers to pay this tax?
They should know the 99ers have no way to pay this.
And should make them exempt from this penalty.

by Guest Sun Apr 03, 2011 3:57 pm

My experience is to file on time. Call them within 60 days and explain your situation and ask for the STOP program. It's an automatic if you owe less than $10,000. They will enroll you and will freeze your payments for I believe up to 12 months or until you get a job again and have income. When that happens, they will work with you on a monthly repayment amount.

Better yet, if you haven't filed, send a letter with your filing askind for the program after explaining your situation. Even if you file electronically, send the letter seperately with a paper copy. They will contact you but if not, do call within 60 days.

by Quiethawk Sun Apr 03, 2011 4:45 pm

Thanks Boonie I forgot what it was called and this year I will have to do it. I owed $700 last year went on $25 payment plan and have kept up to date , but this year I will owe $740 and now have 0 income. So guess they will just have to wait until I am dead for their pound of flesh....

by Guest Sun Apr 03, 2011 5:05 pm

Quiethawk wrote:Thanks Boonie I forgot what it was called and this year I will have to do it. I owed $700 last year went on $25 payment plan and have kept up to date , but this year I will owe $740 and now have 0 income. So guess they will just have to wait until I am dead for their pound of flesh....

They are very understanding. There are so many of us they know the situation. Worst thing to do is ignore them. They will work with you on your inividual situation.

by mrgolf Sun Apr 03, 2011 6:19 pm

I went 2 years in a row filing on time but not having the money to pay the IRS. They were very easy to work with. Set up a small monthly payment plan (I was working at the time) and eventually got them paid off.

Like everyone has said BE SURE TO FILE ON TIME
What to do if you can't pay your taxes Irs

What to do if you can't pay your taxes Irs

by Guest Mon Apr 04, 2011 9:08 am

by kman Mon Apr 04, 2011 11:10 pm

Carol in CA wrote:kman,
Excellent information.
Thank you for posting this.
How on earth does the government expect 99ers to pay this tax?
They should know the 99ers have no way to pay this.
And should make them exempt from this penalty.

I hear ya on that one - makes me so frustrated!!$$%%^&&**(([email=_+_@#$%]_+_@#$%[/email]^&*()

by lendmeflight2 Mon Apr 04, 2011 11:26 pm

Definitely file on time. I owe back taxes from a couple different mistakes due to errors on my part and I am on a non-collect program and I pay nothing now. In November they will send me a new form and see if I can pay then. Thanks to NC losing EB, I will be a 99er in two weeks and have no idea if I will have any income then.

by mrgolf Tue Apr 05, 2011 2:05 am

lendmeflight2 wrote:Definitely file on time. I owe back taxes from a couple different mistakes due to errors on my part and I am on a non-collect program and I pay nothing now. In November they will send me a new form and see if I can pay then. Thanks to NC losing EB, I will be a 99er in two weeks and have no idea if I will have any income then.

Lendme, good to see you posting. Hope you are able to find something before you become a 99er

by mrgolf Tue Apr 05, 2011 2:08 am

Carol in CA wrote:kman,
Excellent information.
Thank you for posting this.
How on earth does the government expect 99ers to pay this tax?
They should know the 99ers have no way to pay this.
And should make them exempt from this penalty.

If you have been a 99er for awhile chances are you wouldn't owe any taxes. That is the plus side to not having an income.

by Guest Tue Apr 05, 2011 4:14 am

lendmeflight2 wrote:Definitely file on time. I owe back taxes from a couple different mistakes due to errors on my part and I am on a non-collect program and I pay nothing now. In November they will send me a new form and see if I can pay then. Thanks to NC losing EB, I will be a 99er in two weeks and have no idea if I will have any income then.

Sorry you have to go through this Lendme, will keep you in my prayers

by mrgolf Tue Apr 05, 2011 10:48 am

I've got to fill out an extension for my 89 year old Mom. I'm not looking forward to it but I'm probably making more of a big deal than I'm making it. I guess it can be done online now
What to do if you can't pay your taxes Tax-extension-300

What to do if you can't pay your taxes Tax-extension-300

by Guest Sun Apr 10, 2011 5:05 am

Carol in CA wrote:What to do if you can't pay your taxes

By Sandra Block USA Today

http://www.usatoday.com/money/perfi/taxes/2011-03-31-trouble-paying-taxes.htm?csp=34money&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+UsatodaycomMoney-TopStories+%28Money+-+Top+Stories%29

by Quiethawk Wed Apr 13, 2011 2:38 pm

Okay got the scoop.... If you can't pay your taxes you have to file 2010 and get a bill or at least it has to be formally into the system before they can help you. I called the Tax advocate and they just basically told me I didn't hold enough out of my UI no duh.... Then they gave me the number to call to see if I could get help for a hardship on paying taxes. They said they would most likely offer a plan called Currently Not Collectible. Since I had not filed 2010 yet, they put my balance of 2009 on the CNC and as soon as I get a bill from IRS ( 4-5 weeks after I file online longer if by mail ) I can call back and ask that 2010 be put onto the CNC.

The number to call is 1-800-829-0922 be ready to wait for a while took forever but worth it. And yes I cried, didn't want to but having to ask for help does me in every time....

by child of the King Wed Apr 13, 2011 3:07 pm

Having to ask for help has the same affect on me QH. I've always considered myself a person with compassion for others. However this past year has really opened my eyes as to how fast a person can lose everything and have to depend on the kindness of others. If I am ever blessed with a good job again I will do my best to help others any way I can.

by Quiethawk Wed Apr 13, 2011 3:36 pm

Me too COTK.... I seem to not be able to handle anything stressful anymore without crying.... I hate to cry in front of people but I can't seem to help it anymore. Emotions are so very raw these days...

by Guest Mon Apr 18, 2011 1:57 pm

Just reminding everyone today is the deadline to file taxes.

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