One of the most asked questions is how I can get some tax relief and probably a refund from the IRS after paying a late tax. In this post, we will focus on the IRS standard rule during late payment of taxes and then discuss our options during late tax payments.
Many nations don’t have a clear notion about the working of the IRS. They can’t even file their taxes. Although the government is trying to spread awareness, a lack of interest has worsened this situation.
If you are one of them who find it difficult to understand tax laws, you can look for a tax professional (including the best tax law firm in California). When you have a professional tax expert around you, you no longer need to worry about IRS tax rules. Let’s look into the IRS workings and then at the refund process.
Working Process Of The IRS
IRS is the authorized agency for collecting taxes and serving penalties to those who have made some mistakes. IRS has recently increased the number of penalties to spread awareness among the public.
According to professional tax experts (including an IRS tax lawyer in California), last year, the IRS collected around 1.5 billion dollars as penalties for late tax payments. Consult with your tax professional if you are facing similar problems.
Fortunately, some penalty relief or refund options are also in the IRS rulebook. Let’s discuss that in detail.
How Does The Refund Process Work?
Do you know that when a taxpayer pays his taxes late, the IRS can impose a penalty of five to twenty-five per cent of their unpaid amount? Failure to pay a late tax penalty can get you another penalty.
The IRS offers refund options via checks or direct transfer to those taxpayers who have paid their full debt tax along with the late fee. It is to encourage people to abide by the tax rules. This doesn’t mean anyone late to pay his tax will avail this opportunity. There are some criteria to qualify for a refund.
Refund options are strictly for those people who did not do it on purpose. Sometimes, we are in such a difficult situation that we can’t pay the tax amount in time. When you file your reasons to the IRS, they look into the matter carefully and call you for further negotiations. Those with genuine reasons for filing late taxes and penalties receive some refund if the IRS thinks.
You may ask yourself what to do when you are late in tax payments. First, file your late tax to the IRS along with the penalty if you have already received one. Then it is up to the IRS whether you will get any relief.
To get tax relief, you need to negotiate with the IRS people. Fortunately, several tax professionals are there to help you. You can hire an experienced tax law expert to represent you in front of the IRS on your behalf and crack deals in your favour.
This post discusses all the basics of tax reliefs, like refund options and the need for a professional tax law expert. We hope it will help you answer all your queries.