Unfiled Tax Returns
Some people don't file their tax returns because they don't have the money to settle their taxes. Interest and penalties compound on your tax liability, so it is increasing quickly. What should you do to fix this IRS issue?
It's so much better to file your late tax returns and owe the IRS money than to not file at all. It is a felony if you do not file a tax return and you owe taxes but there is no criminal penalty if you file but can't pay your taxes. You will be sentenced to one year in prison or fined up to $25,000 each year for every unfiled year if you continue to not file your taxes.
To know if people have filed a tax return, the IRS uses its computerized IRP (Information Returns Program) to scan 1099 income reports and W-2's. This is a highly efficient system. Before the IRS finds out that you haven't filed your tax return, get organized and get it done!
How to Get It Done
- Organize all your documents together and ask for missing copies from the IRS.
- A tax professional can do your tax return. They will even deal with the IRS in your stead.
- Be aware of tax refunds. Yes, you might still get a tax refund from an unfiled tax return. Be prepared to allow the IRS utilize the refund for payment of your tax liability and be aware of the time limits.
- Fully settle your tax bills. A proper plan can help you settle your tax bills. Work with the IRS and obtain advice from a tax professional to arm yourself from an IRS investigation. You will need to qualify for an Offer in Compromise or an installment agreement. Your IRS problems will disappear with a good plan.
- Plan for the future. Review your tax position with a tax professional and plan strategies that'll work to reduce your taxes and help you reach your financial goals.
About the Author:
Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com