While people with income under a certain amount aren't required to file a tax return because they won't owe any tax, if you qualify for certain tax credits or already paid some federal income tax, the IRS might owe you a refund that you can only get by filing a return. If you had federal taxes withheld by your employer, you may be eligible for a refund of those taxes.
This includes students and part-time workers who may not file because they have too little income to require them to do so. If, however, you wait too long to file your return and claim a refund, you risk losing it altogether.
I know many people have questions about tax law changes related to the American Rescue Plan Act of I urge you to start with IRS. Interest increases the amount you owe until you pay your balance in full. For more information about the interest we charge on penalties, see Interest on Underpayments and Overpayments. You can pay online or by mail with a check.
If you can't pay the full amount of your penalty on time, pay what you can now and apply for a payment plan. You may reduce future penalties and interest when you set up a payment plan.
We may be able to remove or reduce the penalty if you acted in good faith and can show reasonable cause. If you have reasonable cause, respond to Notice CG within 45 days 60 days if you're a foreign filer before we assess the penalty. You may have reasonable cause if you:. For more information, see penalty relief. Call us at the toll-free number at the top right corner of your notice or letter or write us a letter stating why we should reconsider the penalty. Sign and send your letter along with any supporting documents to the address on your notice.
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