In this week’s Tax Tip Tuesday, WRTV Investigates Kara Kenney explains how you can avoid late penalties.Stacy Engle, an IRS spokesperson based in Indianapolis, says if you don’t file because you can’t pay, you an be hit with penalties for failure to file and failure to pay.
"Paying on time will open your doors to options for the payments, so if you can't pay, maybe you can qualify for a payment plan, maybe you can qualify for what some people think of as a settlement or other options for people that literally can't pay anything,” said Engle. “At least file the tax return. That gives the IRS the correct information and to be able to help you. If you don't file we don't know what's going on or why you haven't filed or if you even owe.
You can create an account on www.irs.gov, which will allow you to view how much you owe and how to schedule a payment.