Tax reduction

[CJC6]

I just filed my taxes for 2020-2024. I under withheld 1.5-3k per year. I expect I will receive letters on penalties and interest and underpayment. How do you recommend going about creating a resolution to lower my tax/penalty/interest liability?

[DianeW777]

It's a great question. When you receive a letter requesting the underpayment penalty and interest you can provide a detailed explanation about the reasons you were unable to file on time, provide your filing history prior to 2020 if you were consistent until that point. They can be very forgiving but the interest may not be relieved.

Another avenue is the  Taxpayer Advocate Service (TAS).  They are in place to assist in situations where you are unable to obtain resolution on your own.

1. You can click here to begin: TAS Qualifier Tool. or 
2. Submit a request for assistance - Form 911 Request for TAS Assistance (instructions are included)
3. Locate the local TAS Office for your area

This will get the process started for you.  It's not going to be a fast process because they are handling a large volume at this time.