Some of the worst tax penalties that the IRS and states impose are related to unfiled tax returns with an outstanding balance. Failure to file a tax return might result in the loss of a tax refund even if no taxes were owed.
Getting documentation and records together is the first step in filing your taxes. Obtain your W-2s and 1099 documents for each of the years that you did not file a return. You can contact your employers to get a copy of this income information if you can’t find these documents. If you plan to take advantage of specific credits and deductions, ensure you have receipts on hand.
What Are The Consequences Of Failing To File Your Taxes?
Unfortunately, failing to file a tax return on time may result in criminal charges. If you consistently submit your paperwork year after year, after the deadline, the government may launch a lengthy investigation. Your tax refund will therefore be delayed as a result, and depending on the fines, a refund may even be forfeited.
Fortunately, the government only has a short window of time in which it can file a criminal charge against you for tax evasion. If the IRS decides to pursue charges, the IRS must do so within six years after the due date for the tax return.
What If I’m Having Trouble Paying The Full Amount Of Taxes Owed?
You might be able to qualify for the government program also known as the IRS Fresh Start Program. The IRS Fresh Start Program is an umbrella term for a collection of tax debt relief programs. Stemming from one of them can be seen as the Installment Agreement.
When you make a payment plan with the IRS, you consent to pay the taxes you owe over a predetermined, extended period of time. Consider asking for a payment plan if you think you could pay the full amount of your taxes within the timeframe.
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Offer in Compromise: An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability or doing so creates a financial hardship. It’s good to explore all other payment options before you submit an offer in compromise. The Offer in Compromise program is not for everyone.
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Non-Collectible status: Simply stated, being placed on currently not collectible status means that the IRS has agreed to stop attempts to collect back taxes. This happens after the IRS receives evidence that the taxpayer cannot pay the tax debt owed.
Why It’s Good To File Your Taxes As Soon As Possible
The next thing you should do is file your tax return as soon as you can. Putting off taking action could result in you missing important deadlines.
When someone hasn’t filed a tax return in years, the IRS will occasionally file one for them. It may sound good to you because you don’t have to do your tax return but it’s not as pretty as it sounds. You’ll have to owe the maximum possible taxes and penalties if the IRS ends up filing for you. This is also known as a substitute for return (SFR).
IRS Fresh Start Program May Be Just The Thing You’re Looking For
To achieve the best result for your circumstance, our team consists of experienced tax preparers and experienced tax resolution professionals. The IRS Fresh Start Program is a program that helps you reduce, resolve, and eliminate tax debt.
We make it simple for you to email all of your paperwork electronically, eliminating the need for in-person meetings. Our tax preparers and tax professionals work all year round rather than just during tax season.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.
