Posted On April 03, 2015

Taxpayer should send finished return to IRS, even without payment

There are always some of us in Nevada or elsewhere who finish their taxes and find that they don’t have enough money to pay the bill owed. It’s a good way to get a headache.  For the 2014 return, it’s even more of a concern because — for the first time — there will be penalties for not having health insurance. The IRS reportedly has a calculator app that will help a taxpayer to compute the amount due.

Owing the government money is not a honeymoon experience. However, the agency reportedly is willing to work with taxpayers who want to get their back payments paid. They may give the taxpayer a payment plan. According to some who’ve been through it, ignoring the agency is the worst thing to do.

Sometimes it helps to bring in a professional tax adviser and/or tax preparer. Someone with a little extra tax savvy may find deductions that were missed in prior returns and may even figure out how to get a taxpayer a refund. One of the realities of being uninformed taxpayers in this day and age is that we tend to miss many benefits that we could have obtained with a more thorough approach to our returns.

If you are going to contact the IRS on your own, expect about a one-hour wait on the phone.  Also, taxpayers should always remember the cardinal rule: even if you don’t have the bottom line payment that is due, send the completed return in without the payment. Filing a return, with or without the funds, is an absolute requirement that will keep the taxpayer out of much hotter water.

In Nevada, a taxpayer needing assistance with respect to an IRS problem can choose from a variety of tax professionals and preparers. However, beware of the high-powered, fast-talking companies that advertise on cable all night long. One thing you can be sure of about those entities is that they’re going to cost a lot, and most of the time the results are mediocre at best.

Source: mainstreet.com, “Here’s What to Do If You Owe Money on Your Taxes and Can’t Pay“, Brian O’Connell, March 30, 2015