Individuals affected by the severe storms and tornadoes in Mississippi have been granted an extension to file their taxes. It is crucial for individuals who turned 72 years old last year to meet the April 1 tax deadline without fail. The deadline to file tax returns on April 18 is rapidly approaching, so time is running out.This time of year often brings good news for many taxpayers, as the IRS has already disbursed $158 billion in tax refunds as of March 17, with an average refund amount of $2,933.
In case you’re still finalizing your tax return, here are some eleventh-hour tax tips that may help you save money and avoid headaches.This week, the IRS declared that individuals and businesses in specific communities of Mississippi, who were victims of severe storms, straight-line winds and tornadoes, now have until July 31 to file their tax returns and settle their tax dues. This extension also applies to 2022 contributions to IRAs and health savings accounts, in addition to submitting quarterly estimated tax payments, quarterly payroll, and excise tax returns.
Tax filing deadline
Taxpayers residing in federally declared disaster areas are eligible for an tax extension of their filing deadline, granted by the IRS. In response to the severe snowstorms that impacted certain regions of New York in late December, the agency declared last week that affected individuals now have until May 15 to file their tax returns.
Due to multiple natural disasters, the majority of California and certain areas of Alabama and Georgia have been granted an extension until October 16 to file their tax returns. To find out about other regions receiving extensions due to extreme weather incidents, visit irs.gov and look up “Tax Relief in Disaster Situations.”
In case you reside or operate a business outside the specified disaster zone but have been impacted by the storms, the IRS has suggested calling its disaster hotline at 866-562-5227 to ask for an extension.
If you’re unable to pay your tax bill, here are the steps you can take
When facing a tax bill that you cannot pay, it may be tempting to evade the IRS. However, it is essential to resist that urge. Your initial move should be to contact the agency directly, instead of relying on the number you hear on TV or radio ads that claim to offer tax relief. Visit irs.gov and click on the “Make a Payment” link, where you can access information about various payment options. You might qualify for an installment agreement that enables you to pay off your outstanding balance over time.
Another option you can explore is applying for an “Offer in Compromise” or OIC, which is designed to assist individuals who are in such dire financial straits that it is improbable for the IRS to collect the entire debt owed. The OIC program permits you to resolve your tax debt for less than the total amount owed. Once again, visit irs.gov and search for “OIC” to access the pre-qualifier tool that allows you to determine your eligibility.