April is National Stress Awareness Month and I thought I’d take a moment to give you some tax-stress relief advice.
Whether you will owe taxes or get a refund, filing a return, even if you cannot pay right now, is critical. Seeking out psychotherapy could also help. Not only to deal with your stress, but to establish and validate the genuine mental disability that can be caused by a catastrophic event or life change.
The IRS often makes allowances for people in difficulties, but takes a dim view of those who don't file. Last year the IRS assessed more than $6 billion in civil penalties against taxpayers who failed to file. Penalties for non-filing can be up to 25 percent of tax due, but they may be reduced or eliminated when evidence of treatment for a mental illness constituting a 'reasonable cause' for non-filing can be shown. Even if years have passed without filing, the IRS may consider abatement when shown proof of treatment.
Remember to take a deep breath and know there are options to get through this difficult time.
See more articles about stress and taxes here on my blog.