A new enforcement initiative from the Internal Revenue Service highlights the need for everyone to file their tax returns in a timely manner.
"The IRS is trying very hard to make sure that people who are earning income and should be paying taxes are in fact filing and paying what they owe," said spokesperson Michael Devine. "People have heard about the tax gap and we're trying to close that. As a part of a larger effort to ensure compliance and fairness, the IRS is kind of stepping up our efforts to reach out and assist the high income taxpayers who haven't filed a tax return."
These visits are primarily aimed at informing these taxpayers of their tax filing and paying obligations and bringing these taxpayers into compliance.
"All of these people have been contacted by the IRS by mail," Devine said. "These contacts by IRS revenue officers that will be in person and unannounced, they're not going to be surprised that the IRS wants to talk to them about their taxes."
As always, it is best for you if you talk to the IRS first, because the longer you go without filing, the more you'll have to pay in the end.
"Failure to file is a penalty that is five times larger than failure to pay," Devine said. "That's why we say every year, if you do your taxes and you realize that you owe, but you don't have the money to pay it, file that tax return anyway by the deadline. The failure to file penalty gets bigger the longer you wait. The failure to pay penalty is only one-half of one percent of the unpaid taxes. It can get bigger as time goes by. Not filing that tax return means you don't have the opportunity to take advantage of many of the programs the IRS has to help you pay that tax bill."
There are many payment options for people having trouble paying their tax bill. Payment plans can be set up quickly online. Once returns are filed or an assessment occurs, there are various online payment options available at IRS.gov, including direct pay through a bank account or using a debit or credit card. Other ways to pay include the Electronic Federal Tax Payment System (best option for businesses or large payments; enrollment required, Electronic Funds Withdrawal (using during e-filing, same-day wire (bank fees may apply, check or money order or cash (at a participating retail partner).
Those who can’t pay immediately may be able to meet their tax obligation in monthly installments by applying for a payment plan (including installment agreements and those who owe less than $50,000, they can find out if they qualify for an offer in compromise (a way to settle their tax debt for less than the full amount, or request that the IRS temporarily delay collection until their financial situation improves.