In 2020, taxpayers in Georgia received a three-month extension to file their income taxes with the IRS. If you owe the IRS money, the flexibility that you have gotten does not give you any forbearance from penalties and interest if you are late with your tax return. Therefore, if you have not already filed, you should make sure to do so immediately.
IRS penalties can add up quickly
The IRS has a number of ways to make you pay if you do not file your taxes on time. It will automatically hit you with a fee for a late filing. After that, the IRS begins to assess penalties, and these can be steep. Whatever balance you owe will increase by .5% each month as long as it is unpaid. The IRS can add up to 25% of your tax bill as a penalty for late payment.
You cannot bank on getting relief
There is a chance that the IRS can give you some relief from penalties if you fall into certain categories. For example, if you have a track record of filing and paying your taxes on time, the IRS may be a little more willing to waive or reduce some penalties. However, you should file now so that the IRS is a little more open to negotiating. The longer you wait to file your tax return, the more the IRS will charge you.
If your tax situation is bleak enough and you owe the IRS significant money, you may need a tax returns attorney to speak to the IRS on your behalf. The IRS is willing to engage with taxpayers under certain circumstances and can show some flexibility. Your lawyer may approach the IRS in order to see if the agency is open to a settlement, which might reduce the amount of money that you owe.