SARASOTA (WWSB) - Monday, April 15th is the last day for you to file your taxes and pay the government without any fees.
If you don't have the money to pay what you owe, there are three different things the IRS says you can do.
The first is a payment plan. That can be either a short term one, which is less than 120 days or a long term one which is more than 120 days. Which one you qualify for depend on how much you owe and your specific tax situation. Fees and interest will be added.
The second option you have is to compromise with the IRS to settle for a smaller amount. The agency considers your income, ability to pay,and your assets to see if you qualify.
The third option is to request to delay your payment. To do that, you may have to fill out a collection information statement form and provide information like your income and expenses. With this option you will be charged interest and penalties.
Most Americans have already spent time, either online or with an accountant, making sure everything is filed correctly. It can be a stressful time, waiting to see if you will have to owe Uncle Sam.
But now, the IRS wants to change that.
The agency has a goal: to make changes so that taxpayers don't have to owe money or be owed money, come tax time. How they plan on doing it is changing how you adjust your paycheck withholdings.But the changes will not be simple and it will be a lot like filing your taxes again.
The new form hasn't been released yet, but a draft was sent out from the IRS to tax and payroll professionals. They say with the new W-4, claiming a certain amount of allowances based on exemptions have been eliminated.
The new form asks people to put the annual dollar in for things like non wage income, itemized and other deductions, and income tax credits expected for the tax year.
Those who have reviewed it are worried about privacy issues, because employees would have to give personal income information to their employer and to avoid that they would have to use the irs's withholdings calculator, which many say is confusing to use. The new W-4 form will be released in time for the 2020 tax year.
The IRS also wants people to be aware of scams that taxpayers may come across during tax season.The IRS’s “Dirty Dozen” scams can be found here.