As the extended deadline with IRS comes fast here on July 15th, here's some basic tips to solve your un-filed tax return(s) issue or tax liability issue:
1. Filing an extension on 7/15 - File an extension by using form 4868 or have your tax preparer submit: https://www.irs.gov/pub/irs-pdf/f4868.pdf Just be sure to get it postmarked for 7/15. You can avoid unnecessary penalties by doing this, especially if you owe!
2. IRS collections resume 7/16 - IRS collections is active again after the 15th so if you have IRS letters that seemed urgent it's time to connect with your tax professional to make sure you aren't vulnerable to liens and levies.
3. Settling IRS Tax Debt - The Offer in Compromise is still a viable way to settle your tax debts, particularly if you have seen your income slide with the pandemic.
4. How many years should you file? - The general rule-of-thumb is six years should bring you into full compliance which means '14 to '19 at this time.
