Steven Holt, partner and chair of the Tax Law, Trusts, and Estates Practices at Mandelbaum Barrett PC, addressed a parent’s concerns about their college-aged child’s unreported income for NJ Money Help.
Holt explained that the IRS may charge interest and penalties for failing to file and pay taxes, though penalties may be waived for good cause. He advised that the student should file tax returns as soon as possible, seek professional tax assistance, and explore payment plans if needed. Additionally, if the income affects need-based financial aid, the family should review the school’s policies and consider amending financial aid applications accordingly.
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