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Explain that there are 2 separate penalties, 1 for late filing and 1 for late payment.

Long time client, hit some tough times. Pulled some money out of IRA to make ends meet. Did not have the money to pay me for the return and does not have the money to pay the taxes. We waived our fee to help them out, but they still don't want to file because they can't pay. We did not get their 8879s last night. What do you do with a client like this? You can only suggest....they have to sign the return to file. Breaks my heart but I don't know how to handle. I feel for them, but I think I did all I can do (short of paying their taxes. Tom

Base went up $9.80 from 164.90 to 174.70.

And don't forget self caused issues, such as shielding income from W2 reporting. Zero SS recipients who could have managed their finances to reach SS max contribution get any sympathy from me. I discuss this daily, "why are you hurting yourself and your family by even considering W2 "games" before your SS wages reach the SS max every year?" Of course, there are those who do not believe in SS (and should not complain at all), but for the majority who will claim, belief or not, no complaints are heard from me unless they are collecting at or near the max. My own grandmother collected for just shy of 50 years... and we have planned for our disabled daughter to do the same (SSDI when I get to FRA) for hopefully 40+, plus if I meet my demise early, I will have left my spouse in good SS shape - by not gaming "reasonable compensation".

Both main CPI calculations (W & U) are "chained" which results in a lower percentage increase. So when consumers switch to cheaper products because they can no longer afford what they used to buy, this becomes part of the calculation by swapping in cheaper goods for what we used to be able to buy. It's a death spiral of poverty, brought to you by the millionaires in congress and their wealthy owners.

The real funny thing about Social Security increases, is Medicare premiums go up and eats up the cost of living increase. Last year was an exception. I'm assuming Medicare costs will go up this year.

I also seem to have a couple of these clients every year, most retired on a fixed income. I always tell them that, even if they can't pay, to file the return. It's not going to go away by ignoring it and will only get worse. I explain the failure to file penalty of 5% per month of the amount owed, 1/2% a month failure to pay penalty, and the interest. I then urge them (and offer to help them) to set up an installment plan to stop the penalties. I like to follow up the discussion with an email to document that we had the discussion so they can't come back and say I didn't inform them.

You don't need an attorney. You need a Patient Advocate or a Health Care Advocate to help your daughter navigate the system.