October 07, 2010 // Franchising.com // (Virginia Beach, VA) Millions of taxpayers who filed an extension request in April now face the October 15, 2010 final tax filing deadline for 2009 returns. Small nonprofit organizations that are required to file a Form 990N, Electronic Notice (e-Postcard) and have not done so for the last the last three years need to file by October 15 or lose their tax-exempt status. Small nonprofit organizations that are eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, are eligible for the voluntary compliance program and are required to complete delinquent annual information and pay a compliance fee by October 15.
Liberty Tax Service urges those who still owe taxes and must file, to examine several available options. Extensions allow more time to file, but not to pay any taxes due, so interest is accruing on taxes not paid by the April filing deadline. In today's recovering economy, the IRS is reacting to taxpayers who are suffering financially due to job losses and other economic hardships.
"It's always better to pay what you can, and show the IRS your intention to pay the rest of your tax liability. Taxpayers can e-file their returns through this final deadline," said John Hewitt, CEO of Liberty Tax Service.
Borrowing the money, taking out a bank loan, or establishing a home equity line of credit are options to meet the final tax filing deadline. Or taxpayers can ask the IRS for permission to make monthly installment payments by completing Form 9465, Installment Agreement Request, and attach it to the tax return. The IRS will approve or deny the request by sending out a written response. Another available option to ensure timely payments is to have the funds directly debited from a bank account.
Some financially distressed taxpayers may quality for an Offer in Compromise. Under an OIC agreement, the IRS may agree to settle the taxpayer's liability for less than the full amount of taxes owed. The IRS is not likely to approve an OIC if there's evidence that the taxpayer could pay the full amount through the installment plan or other method. The IRS measures the "reasonable collection potential" (RCP) for payback by considering the value of the taxpayer's assets including property, cars, other accounts and anticipated future income. A taxpayer can request consideration for an OIC by filling out Form 656, Offer in Compromise, or Form 656L, Offer in Compromise (Doubt as to Liability) and submit it with their tax forms.
Liberty Tax Service is the fastest-growing retail tax preparation company in the industry's history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 41 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX). The Liberty Tax Service franchise opportunity is #9 on the fastest growing franchise list of the latest Entrepreneur "Franchise 500."