Which tax circumstance might make a taxpayer ineligible to make IRA contributions?

A taxpayer may become ineligible to make IRA contributions if they fail to file any tax return. The Internal Revenue Service (IRS) requires that individuals must file a tax return to be eligible to contribute to an Individual Retirement Account (IRA). This is primarily because IRA contributions are based on reported earned income, and the IRS needs a tax return to verify this income. If no return is filed, there is no official record of income, making it impossible to ascertain eligibility to contribute to an IRA.

The other options do not directly lead to ineligibility for making IRA contributions. For instance, late payment of taxes does not affect one's ability to make contributions, as IRA eligibility is based on filing status and income rather than tax payment history. Low income does not disqualify a taxpayer from making IRA contributions either; individuals can contribute to an IRA regardless of whether they earn below a certain income threshold, as long as they have some form of earned income to report. Therefore, failure to file a tax return is indeed a critical circumstance that can result in ineligibility for IRA contributions.