What's happened
As the April 15 tax deadline approaches, experts emphasize the importance of filing returns even if taxes owed cannot be paid in full. Taxpayers can request extensions and explore IRS hardship programs to manage their obligations. Understanding these options is crucial for first-time filers and those facing financial difficulties.
What's behind the headline?
Importance of Filing
- Filing a tax return is essential, even if you owe money. Not filing can lead to immediate penalties and interest.
- Taxpayers should communicate with the IRS about their financial situation to avoid severe consequences.
IRS Hardship Programs
- The IRS offers options like Currently Not Collectible (CNC) status, which provides temporary relief from tax collection for eligible taxpayers.
- This program is designed for those who have a history of timely payments but are currently facing financial difficulties.
First-Time Filers
- First-time filers should gather necessary documentation, including W-2 forms and Social Security numbers, to ensure a smooth filing process.
- Communication with parents is crucial for young adults who may still be claimed as dependents, as this affects their tax credits and deductions.
Extensions and Payment Plans
- Taxpayers can file for extensions until October 15, but this does not extend the payment deadline. Estimated payments should still be made by April 15 to avoid penalties.
- Utilizing resources like Volunteer Income Tax Assistance (VITA) can help taxpayers file returns and set up payment plans.
What the papers say
According to AP News, tax professionals stress that 'owing money is not a reason not to file,' highlighting the importance of filing returns to avoid penalties. They also note that the IRS is willing to work with taxpayers who communicate their situations. In contrast, Business Insider UK emphasizes that while extensions can provide more time to file, they do not extend the payment deadline, urging taxpayers to estimate and pay what they owe by April 15. The NY Post discusses the IRS hardship program, explaining that it allows individuals facing financial difficulties to pause collection activities temporarily, provided they have a history of timely payments. This perspective aligns with insights from other sources, which collectively underscore the importance of understanding tax obligations and available relief options during this critical season.
How we got here
Tax season is a critical time for individuals, especially first-time filers. With the April 15 deadline looming, many are seeking guidance on how to navigate their tax obligations, particularly in light of potential financial hardships and available IRS programs.
Go deeper
- What should first-time filers know?
- How can I apply for a tax extension?
- What are the consequences of not filing?
Common question
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What Do First-Time Filers Need to Know About Tax Season?
Tax season can be overwhelming, especially for first-time filers. With the April 15 deadline approaching, it's essential to understand the necessary steps to file correctly and avoid penalties. This guide answers common questions and provides tips to navigate the process smoothly.
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What are the key deadlines for tax filing this year?
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What Do Taxpayers Need to Know Before the April 15 Deadline?
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The Internal Revenue Service is the revenue service of the United States federal government. The government agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue, who is appointe
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.