Have a Tax Question? Ask a Tax Expert
Hi, I can help you here
I'm sorry, I thought you had a question for me
i submited some questions for a tax expert
Sorry ... no... i WAS working on an aswer for your questions as you listed .... here's the first one
how much will the penalties be for paying taxes late?
There are two penalties: Failure to File … and Failure to pay
But, if you didn't work and didn't OWE anything (or made less than the standard deduction and personal exemption) - In 2011 the standard exemption was 5,800 and the personal exemption was 3,700 – then you wont OWE or even need to file … you'd be below the filing threshhold.
Also, the failure to file, however, is based on the taxed OWED: The penalty is 5% of the amount of unpaid tax per month the return is late, up to a maximum of 25%.
And they do have the ability to penalize for a MINIMUM of $135, but in all my years I have never seen them apply this penalty when taxes were not owed at all
Now, if it works out that you DID make enough ti have to file AND that there was some taxes owed, even after offsetting any taxes withheld by your employer, then it works this way:
“If you're required to pay an amount ... shown on your return, but you fail to pay that (even if the reason of nonpayment is a bounced check), there is a penalty of .5% of the amount of unpaid tax per month the return is late up to a maximum of 25%.”
So, lets start wit 2011 ... Did you make more than (5800 + 3700)?
I'm sure that i did but to be honest i've forgotten
i work as a computer contractor and make pretty good money when employed
but unemployment can come quickly and unexpectedly
OK, well you (in doing the taxes, will subtract that amount before) subtract that amoumt before calculating taxable income, so it may not be as bad as you thought.
ALSO, once you do get your arms around it ... there a way to set up an installment agreement online if you owe less than 50K
ok...good...thanks for the link
when i lost my home i got depressed and didn't even try to do taxes
Believe me ... you are not alone
dumb thing to do but thats what happened
its a situation that happens a lot
sOK .. lets go from here...
I can give you the process there too
LOTS of things would havge to happen before a garnighment or levy
but if you haven't heard from them
that would be pre-mature
good / hopefully
I would just start by getting turbotax for the yuor you need and file (when you get to the part for efiling you'll have to print and send, but the addresses are thene)
Befor workng through all that let me give the form and process that will "stop the locomotive" in its tracks if you did get a notice of intent to garnish or kevy /// hang on just a sec
From IRS collection and appeal rights noptice (I'll give you the link) You may appeal many IRS collection actions to the IRS Office of Appeals (Appeals). Appeals is separate from and independent of theIRS Collection office that initiated the collection action. Appeals ensures and protects its independence by adhering to a strict policyof prohibiting certain ex parte communications with the IRS Collection office or other IRS offices, such as discussions regarding thestrengths or weaknesses of your case. Revenue Procedure 2012-18 has more information about Appeals’ independence and ex partecommunication
i haven't heard anything from the irs but i changed addresses
For either one of the processes discussed on that pdf file, you just send in Form 12153, Request for a Collection Due Process or Equivalent Hearing
Here's the form
i know i've asked alot but can we take a look at questions 2 and 3 again
But, again, I would just start by doing the taxes earliest first, then when you'e done with al ... see what you owe and send in the filings along with the request for installment payment plan
(2) Since I still don't have any money is there anyway to get the IRS to settle the debt for less than the amount owed and if so how difficult is this to do?
i'm afraid the bank is going to say that we sold your house for 65k less than the loan so you owe taxes on 65k
OK that's another issue
Inder the Mortgage forgiveness act, the tax on that debt is forgiven if it was you primary home OR if you were insolvent at the time
you simply fill out form 982
ok..thanks....i think i met both criteria
since it was the primaty ome, you don't have to jumpthrough any hoops, just send in the form with the taxes for the year you get the 1099 from the bank
if i fill out an extension to file i guess i'll be charged the penalties then too?
Yes, and the extension will always say send in the money anyway
i think that you've answered all of my questions
thank you very much
everything is MUCH easier ... if you can... if you can just send in the three 1040s
In myexperience, if you get to them before they get to you ... you'll be fine
If you need more help ...
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And enter your question in the question box
anything else for now?
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