undefined | What happens if you can't pay your tax bill by the April deadline this year?

Waiting to deal with unpaid tax debt can turn a short‑term cash crunch into a long‑term financial problem. When the April deadline passes, the IRS begins charging two separate penalties: a failure‑to‑pay penalty of 0.5 % of the unpaid balance per month (capped at 25 % of the total debt) and daily interest calculated at the current federal short‑term rate plus 3 %. These charges compound, so the longer the balance remains unpaid, the larger the gap between what you originally owed and what you’ll ultimately have to pay.

Skipping the filing step because you can’t pay is a costly mistake. The failure‑to‑file penalty is much steeper—up to ten times higher than the failure‑to‑pay penalty—so filing your return on time, even without payment, dramatically limits penalty exposure. After a balance becomes overdue, the IRS sends a series of notices; if they go unanswered, the agency can file a federal tax lien, levy bank accounts, or garnish wages. While none of these actions are inevitable, they become far more likely once communication breaks down.

If you truly can’t pay the full amount, the IRS offers several relief options. Installment agreements let you pay the debt over time; an Offer in Compromise may settle the debt for less than owed if you demonstrate significant hardship; and Currently Not Collectible status pauses collection actions (though penalties and interest continue). First‑time penalty abatement or reasonable‑cause relief can also reduce penalties. For larger or more complex cases, a tax‑relief professional can help evaluate eligibility and negotiate with the IRS. Acting quickly—filing on time, responding to notices, and exploring these programs—can keep an unpaid tax bill from spiraling into a financial emergency.

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#aprildeadline #irs #federaltaxlien #installmentagreements #offerincompromise

Business Latest | Nobody Knows How to File Taxes on Prediction Market Wins by Kate Knibbs

Nobody Knows How to File Taxes on Prediction Market Wins | WIRED

Americans flocked to prediction markets last year. Now, it’s time to pay taxes on winnings. How do you do that? Great question.

How do you file taxes on prediction market profits? It seems like the type of straightforward question any halfway decent bookkeeper should be able to answer. Right now, though, it’s a conundrum for tax experts across the country. “You have a vacuum of guidance,” says Patrick Camuso, an accountant who specializes in digital assets. “It puts the taxpayer in a bad position.”

Read more: https://www.wired.com/story/nobody-knows-how-to-file-taxes-on-prediction-market-wins-and-losses/

#americans #prediction-markets #irs

Yahoo Finance | Most Crypto Users Are Unaware Of New Tax Rules, Coinbase Survey Finds

Most Crypto Users Are Unaware Of New Tax Rules, Coinbase Survey Finds
David Okoya • Sun, April 5, 2026 at 3:16 PM GMT+2 • 9 min read

The majority of U.S. cryptocurrency users are oblivious to new tax reporting rules, cryptocurrency exchange Coinbase Global (NASDAQ:COIN) and tax software company CoinTracker have found.
About 61% of cryptocurrency users are unaware of new rules for reporting 2025 taxes, a Coinbase and CoinTracker survey of 3,000 cryptocurrency users published recently showed.

The survey comes ahead of the April 15 tax filing deadline for the 2025 tax year.
The way cryptocurrency users should file taxes changed in 2025 following the IRS’s introduction of Form 1099-DA, requiring users to report the gross proceeds from cryptocurrency transactions. The form is sent by brokers and, for the 2025 reporting year, will require users to calculate the cost basis for all their transactions.
Coinbase last month criticized the new requirements for their complexity, citing the difficulty users face in reconciling cost data across multiple platforms. Cryptocurrency users transact across at least two wallets or exchanges, according to the survey conducted between Sept. 9 and Oct. 3.
Coinbase last month also decried rules requiring users to include transaction fees in their cost basis calculations and to report stablecoin transactions as overly burdensome, while generating negligible revenue.

Read more: https://finance.yahoo.com/markets/crypto/articles/most-crypto-users-unaware-tax-131627603.html

#coinbase #irs #u.s. #form1099-da

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The US #Treasury & #IRS will soon provide "guidance" to religious orgs. (like churches) on their interpretation of the Johnson Amendment's relevance to them.

The Johnson Amend (1954) prohibits all 501(c)(3) tax exempt organizations (like churches) from endorsing/opposing political candidates ⬅️

The US Treasury's blog (see below) alludes to 1st Amend conflicts with the Johnson Amend & religious orgs. The IRS has already selectively stopped enforcing the provision 👀

1🧵
#USA #law #religion

Hey, #US public announcement: #Tax filing is almost upon us. If you are mailing dead trees to the #IRS, Thursday the 9th is your last day to drop it in the postal box and have it delivered in time, according to the Postal Service. (#USPS)

If mailing after the 9th, you need to go to the post office, and go to a clerk and have it manually postmarked, so as to avoid kerfuffle and fines in the future.

US Top News and Analysis | Robinhood, BNY to build Trump Accounts app

Robinhood, BNY to build Trump Accounts app
The U.S. Department of the Treasury announced Monday that Bank of New York Mellon (BNY) will be the designated financial agent for Trump accounts. BNY will manage the initial accounts and has partnered with Robinhood to develop a yet-to-be-released Trump Accounts app, according to an announcement on CNBC's "Squawk on the Street." The initiative, launched on July 4, provides tax-deferred investing accounts for children born between 2025 and 2028, featuring a one-time $1,000 Treasury deposit for eligible participants.

As of March 31, more than 4 million children had been signed up for Trump accounts, with over 1 million eligible for the Treasury’s $1,000 pilot program contribution, per the IRS. Parents or guardians can enroll by filing IRS Form 4547 with their 2025 tax returns or via TrumpAccounts.gov. The authentication process is expected in May, with seed money arriving on July 4. BNY, alongside other large employers, previously pledged to match the Treasury’s $1,000 contribution for employees’ children, reinforcing the program’s goal of expanding financial opportunity.

Robinhood CEO Vlad Tenev affirmed the company’s support for Trump accounts “from the very beginning,” citing its technology resources and commitment to the program’s success. Contributors can add up to $5,000 annually in after-tax dollars, with employers able to deposit up to $2,500 pre-tax yearly for employees’ children. The contribution limit is indexed for inflation after 2027, and philanthropists in multiple states have committed to seeding accounts for qualifying families. The IRS emphasized collaboration with the Treasury to simplify enrollment through a one-page tax return form.

Read more: https://www.cnbc.com/2026/04/06/treasury-trump-accounts-bny-robinhood.html

#robinhood #bny #trumpaccounts #u.s.departmentofthetreasury #irs