A mix-up with information or even forgetfulness can be a serious problem when dealing with the IRS. Some New York residents may think that they have everything in order only to realize later — maybe due to a notice from the IRS — that they did not handle a tax-related matter appropriately. Unfortunately, this could result in their facing collections for unpaid taxes.
One issue that could cause some confusion, especially this tax season, is extensions for filing tax returns. Some individuals may think that they should take advantage of an extension because they do not have the money to pay their owed taxes by the current filing deadline, which is July 15. However, applying for and receiving approval for a filing extension does not mean that individuals can put off paying what they owe.
This year, the extension would allow individuals to file their tax returns by Oct. 15. However, the taxes they owe are still due July 15. Understandably, this may cause some mix-ups for parties who thought they were getting an extension on their payment due date. If they miss their deadline for paying any owed taxes, they could end up in a difficult spot.
Uncertainty and confusion around tax matters are almost inevitable because laws and information about filing change practically every year. If a mix-up or missed due date leads to New York residents facing collections, they may wonder what they can do. In such cases, it may be worthwhile to seek professional help, and attorneys knowledgeable in tax laws may be able to help those in difficult predicaments.