Every year, hundreds of thousands of taxpayers fail to file legally required tax returns on time. The act of not filing usually contributes to more significant problems with the passing of time.
While there are many reasons why a taxpayer may not file a tax return, you need to be aware of the following:
Failure to file tax returns may be construed as a criminal (misdemeanor and potentially a felony!) act by the IRS.
This type of criminal act is punishable by one year in jail and $10,000 for each year not filed.
Needless to say, it’s one thing to owe the IRS money, but another thing to potentially lose your freedom for failure to file a tax return.
The IRS will not entertain any type of tax settlement or payment plan to settle unpaid taxes until you have filed all legally required tax returns.
To qualify for an IRS Installment Payment Plan or Offer in Compromise tax settlement to resolve your back taxes, you need to file all delinquent tax returns with the IRS.
The IRS will not entertain any type of settlement or arrangement until all legally required returns are filed and the taxpayer is in full filing compliance.
If you’re among the Americans who have opted to not file your tax returns because you don’t have the funds to pay the taxes owed, what you may not know is that the IRS will often file a “SFR (Substitute for Return) on your behalf if you fail to file your taxes. This is the IRS’s version of an unfiled tax return.
Additionally, the IRS prepares these Substitute For Returns in the best interest of the government, resulting in the IRS overstating what taxes you owe and, consequently, what you owe in penalties and interest. The only deductions you’ll see are standard deductions and one personal exemption. You will not get credit for deductions which you may be entitled to such as exemptions for spouses, children, interest and taxes on your home, cost of any stock or real estate sales, and business expenses, etc.
So it’s important that you file your latest tax return, as well as any prior delinquent unfiled tax returns, as soon as possible to give yourself a chance to state what you truly owe, which will ultimately save you money and help you avoid significant long-term consequences. Regardless of what you have heard, you have the right to file your original tax return, no matter how late it’s filed.
If you want to file some delinquent tax returns or talk about how to solve your IRS problem” call us confidentially at (303) 904-1451 or complete our confidential contact form which will entitle you to request that someone from our firm contact you to schedule a FREE initial consultation.
What have you got to lose except, your FREEDOM!? CALL NOW! Do yourself and loved ones a favor.
