You May Not Have to Pay a Penalty for Filing Late

Filing your income taxes late often results in a fine, but the IRS recognizes that there are legitimate circumstances that make it difficult or impossible to file on time and may waive the fines in those cases.

You may not need to pay a penalty if the IRS agrees you had a good reason for filing late. Some reasons the IRS accepts include: 

• A natural disaster like a tornado, or other personal disasters like a fire.
• You tried, but were unable to obtain all the records you needed for filing.
• The taxpayer or a family member died, had a serious illness or unexpected absence, or was incapacitated in some other way.

There may be other reasons that kept you from meeting your tax obligation.

Learn more on our website!

Tips for Filing 2020 Income Taxes Late

Working with the IRS can seem complicated and intimidating at times – especially when you’re facing the uncertainty that comes with filing your income taxes late. 

As soon as you know you’ll be filing late, apply for an extension using Form 4868 or from the Free File link on the IRS website. Don’t wait until after the May 17 deadline! 

It’s important to remember that:

• You must apply for the extension by the May 17 deadline. 
• An extension to file does not extend your deadline to pay, if you owe.
• You will need to file an estimate of your taxes. If you estimate owing, you should make a payment towards that amount by May 17 to avoid a penalty.

Taxes don’t have to be scary. Amador Accounting is here to help. 

Learn more on our website!

Is COVID Slowing Down the IRS?

Is COVID affecting your tax return or Economic Impact Payment? 

Although the IRS is open, some of their services have been slowed down by COVID, including: 

• Telephone support
• Paper tax returns
• Responding to mail
• Reviewing tax returns

If you’re wondering about the status of your Economic Impact Payment (otherwise known as the stimulus check) or your 2020 tax return, you can check your status on the IRS website. The website can help you figure out your status, type of payment, and if you meet the requirements to receive the stimulus check. 

Visit our website to learn more about the latest stimulus package.

How Does the Latest Stimulus Affect Your Family?

On March 11, the American Rescue Plan Act of 2021 was signed into law promising some economic relief to millions of Americans affected by the COVID pandemic. 

In addition to providing funding for a vaccination program, to help schools reopen, and to aid state and local government workers, among other provisions, the new package provides three ways for Americans to receive direct financial assistance from the government. 

Are you wondering how the Act will affect your family? Visit our website for more information.