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Quick question - does anyone know if these late fees are tax deductible? Asking for a friend... π
Pro tip: If you're having trouble paying, look into an Installment Agreement. You can set up monthly payments and it might help reduce some of the penalties. Just make sure you can stick to the payment plan!
That's a great idea! Do you know if there's a minimum amount you have to owe to qualify for an Installment Agreement?
AFAIK, there's no minimum, but the process is different depending on how much you owe. If it's under $50k, you can usually set it up online pretty easily. Over that, and you might need to provide more financial info.
Have you considered hiring a tax professional to deal with this for you? Sometimes it's worth paying someone who knows how to navigate the system.
I've thought about it, but I'm worried about the cost. Any idea what something like this might run?
It varies, but for a straightforward issue like this, probably a few hundred bucks. Might be worth getting a consultation to see if they think they can help.
tldr: IRS phone system sucks, gather all your docs, be prepared to wait forever, and may the odds be ever in your favor π
Mary Bates
Whatever you do, DON'T IGNORE IT! That's the worst thing you can do with IRS notices. Trust me, I learned that the hard way π
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Clay blendedgen
β’Oof, sounds like theres a story there. Care to share what happened?
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Mary Bates
β’Let's just say ignoring it led to some hefty penalties and a lot more stress than if I'd just dealt with it right away. Don't be like me, kids! π
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Tom Maxon
what letter are you dealing with?
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Dallas Villalobos
β’It's a CP2000 notice about unreported income. Says I didn't report some freelance payments from 2021. Honestly, I'm panicking a bit because the amount they're asking for is pretty significant.
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