Many people who filed their 2018 tax returns were surprised to receive a lower tax refund than they ever had before. Some people in Colorado may have even received a tax bill from the IRS. While many of the new tax law provisions benefit the wealthy and some benefit the general population, retirees and large families may get hit the hardest.
Even though tax season has already passed, many taxpayers still remain quite stressed about their financial situation. This is often the case when you owe taxes that you can't pay, which means you'll be faced with the prospect of costly penalties until your taxes are sufficiently paid off. H&R Block explains a few steps you can take if you're unable to remit the taxes you owe.
If you receive an unfavorable decision letter from the IRS stating you owe tax penalties on your Colorado state or federal return, you may be panicking. However, there are things that may reduce the penalty. One option is to negotiate with the IRS examination agent, and another one is to file an appeal, which is often granted. This may have favorable results or, at minimum, increase the time you have to pay your tax bill.