Tax Day has been pushed to Tuesday, April 18 because of a holiday in the nation’s capital this year. This gives you an extra few days to file your tax return or pay any taxes owed to the government. With the federal tax deadline upon us, Better Business Bureau serving the Northwest wants to inform taxpayers of time extension options, how to pay owed taxes and the new IRS debt collection change.
Extension to File Your Tax Return
Need some time to get your tax return pulled together? The IRS gives people who complete the proper form by Tax Day a six-month extension of time to prepare their tax return. To prepare and e-file an extension for free, use this list of Free File software companies posted on the IRS website.
Although an extension gives you more time to prepare your tax return, it doesn’t give you more time to pay any taxes owed to the government. Tax Day, April 18 is the deadline for most to pay taxes owed.
Can’t pay now and want to avoid penalty and interest charges? Here are some payment options:
- Apply for an online payment agreementwith the IRS to pay in monthly installments.
- Fill out an Offer in Compromise application to see if you can settle your tax debt for less than the full amount.
- Want to wait until your financial situation gets better to start to pay? Request that the IRS temporarily delay collection.
New Change to IRS Debt Collection
Starting this month, the IRS will begin contacting a few hundred taxpayers whose overdue federal tax accounts are being assigned one of four private-sector collection agencies. Taxpayers who have received multiple contacts from the IRS in previous years and still have an unpaid tax bill will be assigned to a private firm. These taxpayers will be receiving multiple contacts, letters and phone calls, first from the IRS about this change.
The four private groups awarded the contracts to collect on debt are:
- CBE Group, 1309 Technology Parkway, Cedar Falls, IA 50613
- Conserve, 200CrossKeys Office Park, Fairport, NY 14450
- Performant, 333 N Canyons Parkway, Livermore, CA 94551
- Pioneer, 325 DanielZenker Dr, Horseheads, NY 14845
Better Business Bureau serving the Northwest warns taxpayers to watch out for scammers posing as IRS or private collection agents. Private collection firms will only be calling about a tax debt the person has had – and has been aware of – for years and had been contacted about previously in the past by the IRS.
To find out how you can tell the difference between a legitimate debt collector and a scammer, visit www.bbb.org/irscalls.
The IRS also advised any taxpayer who wants to make a complaint about a private collection agency or about the behavior of a specific employee to contact the Treasury Inspector General for Tax Administration (TIGTA). If you run into one of these scams, let others know about your experience by reporting it to BBB Scam Tracker.