Frequently Asked Questions
When is a tax return or payment considered late?
A tax return or tax payment must be postmarked on or before the due date to be considered filed or paid.
What if I can’t file my income tax return by the due date?
The IRS will grant a properly prepared extension request to file your income taxes. Contact Carey Associates to inform our office that you need to file an extension. An extension does not grant an extension to pay your taxes by the due date.
I can’t pay my taxes by the due date ------ What should I do?
Carey Associates can calculate what you need to pay with your extension to avoid penalties and interest. Carey Associates recommends paying as much as possible with your tax return or extension to file. You can pay by credit card, but you will be charged a convenience fee.
What are my other options to pay?
If an individual taxpayer has no other tax debts, the IRS may accept an installment agreement if the tax liability is $25,000 or less and will be paid within 5 years.
Why was I selected for an IRS audit?
There are several possible reasons you may have been identified for an IRS audit. The IRS uses a computer program that assigns a numeric score to every individual income tax return after it is processed. The higher the score, the higher the probability that an IRS examination, will result in a change to your tax liability. If the IRS has a “reasonable indication” that there is a likelihood of unreported income based on records that focus on a taxpayer’s standard of living. Claims for a notably large refunds, information matching programs, or inspection of a related party’s tax returns during their examination may trigger an IRS audit for you.
What is the difference between an IRS tax lien and an IRS tax levy?
An IRS tax lien is an automatic lien on a taxpayer’s property when they are notified of a tax liability and do not pay it within 10 days. A Notice of Federal Tax Lien announces to the public and the taxpayer’s creditors that the IRS has a claim against all of the taxpayer’s owned property. An IRS tax levy is the actual seizure of property to satisfy a tax debt. Federal law allows the IRS to seize and sell any type of property such as real property, personal property, wages and bank accounts. The IRS must give 30 days’ notice before placing a levy. There will be certain exemptions of taxpayer property needed to pay court-ordered child support and/or to pay the most basic living expenses.