I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.
The race is on, as we hurtle towards traditional end of the tax season (the dreaded April 15th, which is April 18th this season). This date is not just the filing deadline (unless you file an extension), it’s the deadline for paying any tax due the federal government. However, not being able to pay the entire tax obligation, should never be your reason for not filing. Taxpayers have a number of options for resolving tax debt. The simplest of which is the Installment Agreement (There are a few different types, predicated on the total amount of the obligation.
Remember that the term “Automatic” extension of time for filing does not mean that the extension is automatically arises (unlike a federal tax lien when tax amounts are assessed against a taxpayer). So, be sure to file for your automatic extension of time for filing (Form 4868 for individuals, and Form 7004 for businesses. Filing for extension of time does not grant the taxpayer more time to pay their obligation. An extension of time to pay can be granted by the IRS on a case by case basis, but reasonable cause must be shown and proven. If you can show an inability to pay (via cashflow statement, using Form 433)
While, CNC Status does not resolve your tax issue or obligation, it prevents the IRS from levying your assets, protecting you while you’re able to come up with a solution to resolve the problem. Have the 433s prepared and ready to submit when you’re negotiating to be considered “Currently Not Collectible”
If ever you’re feeling overwhelmed or you’d rather be doing something else with your time, just remember we’re here to help you with all of your tax preparation, resolution/representation needs. Now and in the future. Don’t put off addressing your tax situation. Feel free to contact us with any questions you may have in approaching your specific tax scenario.