Mistakes do happen as it is a part of a human tendency. Considering the series of paperwork and the usual challenges being faced by people, it is natural that one may encounter a few issues because of the mistakes, they have committed. So, what are they? Let’s find out now:-
What should I do, if I have overpaid to the IRS?
You got a rough idea about your liabilities through Tax calculator 2020 and paid the amount, but soon realized that something is amiss. Let me ask you
What will be your state of mind, if after filing the taxes, you soon realized that you have overpaid? Well, obviously you will be tensed. However, don’t worry.
Follow the procedures as stated below:-
- Cross-check that you have actually paid more than required
- Submit the form 1040X (if you filed in an individual manner)
- After that, inform the higher authority, that is IRS through fax or mail
Thereafter, on getting the required information, the IRS will look out from their end (if it is really that way) and will start the process of sending a check. The whole duration of time can vary from 8 to 12 weeks as you get the tax refund from the Tax return calculator. Now, based on this following specific scenario, you should adhere to the following conditions:-
- Paper filing is allowed for amendment return only
- Keep in mind that you have three years as a fixed period of time for you to be liable to inform the IRS in terms of amendment return
- You need to wait to get the current return, if in case you are filing for the current year. Then only you can proceed to file an amendment for a refund through tax refund calculator
What should I do, if there is the overdue payment?
If for some reason, the tax payment is overdue, then as per the policy of IRS, the authority will keep on applying penalty for every single month till the time you haven’t filed. The penalty may range of up to 25 percent of what you owe in the form of the tax return. The penalty will keep on accumulating every single month. It is recommended to calculate through Tax calculator 2020 the rough figure and pay the full amount. However, if it isn’t feasible, then you can opt for a payment plan.
So, what exactly is the payment plan?
Here, you need to pay one-time fees to get the plan up and working.
Due to your carelessness, if somehow, you aren’t able to pay and if you have a substantially high debt of roughly $25,000, then you may be under a serious penalty and that may include going to prison for three years along with additional penalties.
Can I file an extension?
If you feel that you are going to be late, then you can file an extension by filling the form 4868. It has the following benefits:-
- You may be given a relaxation of up to six months for filing federal and state taxes
- It won’t invite penalties or late fees within this grace period.