The IRS just made one of the most taxpayer-friendly changes in decades. Under the new Automatic Exemption from Penalty (AEP) program, the IRS will automatically waive certain failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers with a clean three-year compliance history, no phone call, no letter, no request required.
Realizing you owe taxes (especially right after Tax Day) can feel overwhelming. For many people, the instinct is to avoid the problem, wait until there’s more money available, or hope it won’t escalate quickly.
Unfortunately, the IRS doesn’t work that way.
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If you owe back taxes and can’t pay, file on time, pay what you can, stay current on this year's taxes and explore IRS options like installment agreements or an Offer in Compromise to avoid penalties and collection actions.
Every year, taxpayers face the same question: should you file your taxes as soon as possible, or is it smarter to wait until closer to the deadline? The short answer is that filing early is best for most people, but waiting can make sense if your income is complex, documents aren’t complete, or you need extra time to plan strategically. Ultimately, the key isn’t speed. It’s accuracy, timing, and managing risk.
[Editor's Note: This article was originally published in February 2014 but has been updated for accuracy and comprehensiveness.]
If your tax refund was lower than expected (or you ended up owing the IRS) you may not be withholding the right amount of federal tax from your paycheck. On the other hand, if your refund was unusually large, you could be having too much tax withheld, reducing your take-home pay throughout the year.
[Editor's note: This article was originally published in July 2018 but has been updated for accuracy and comprehensiveness.]
If you owe the IRS $51,000 or more, unpaid taxes could put your ability to apply for or use a U.S. passport at risk. Thanks to the FAST Act (Fixing America’s Surface Transportation Act), the State Department can deny or revoke passports for taxpayers with seriously delinquent tax debt. Understanding how the FAST Act works—and how to resolve your tax debt—can help protect your passport and your ability to travel internationally.
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{Editor’s Note: This post was originally published in August 2013 and has been updated for accuracy and comprehensiveness.}
Some taxpayers might feel that they don't need to keep their income tax documents unless they have particularly complex tax situations. The reality is that all taxpayers should keep their essential tax documents on file. Depending on your circumstances, you may need to keep your records for several years, in case of an audit or to back up a claim.
{Editor’s Note: This post was originally published in April 2015 and has been updated for accuracy and comprehensiveness.}
The IRS requires that you file your taxes by midnight on April 15. Even with this deadline set in stone, you may still be unable to get your taxes filed in time. If that is the case, you are not alone. According to a study by IPX, roughly 31% of Americans procrastinate filing their taxes. So if April 15 has passed and you haven't filed, here are a few things you can do to minimize the consequences of late filing.
At any given time, about 1% of US workers are probably experiencing a wage garnishment. Wage garnishment can feel like a heavy weight on your shoulders, especially if you're trying to regain financial stability. Many people wonder if switching jobs will put an end to their wage garnishment or if there are other ways to stop it. Let’s break it down into simple terms so you can understand your options and take action.
