If you’re behind on filing your returns, we can help you get them completed and work to reduce or eliminate penalties.
Yes. Yes it is. Don’t let this stop you from filing future returns though.
We see this story time and again. Taxpayer prepares a return only to learn he or she owes taxes for that year. “I don’t have the money right now so I guess I won’t file right now. I’ll file next year when I have the money.”
Next year, the taxpayer prepares a return and again, owes a tax. The snowball effect has begun. Now the taxpayer is paralyzed by fear. “How can I file my returns now? I owe for two years.”
The reality is, that this story is common. We can help. When you’re behind on your returns, we can help you become compliant and even work to reduce or eliminate the penalties for failure to file.
Here’s the trick. You need to start now. The longer you wait to file your delinquent returns, the worse off you will be. The longer you wait to file, the more likely it is that the IRS will consider prosecuting your failure to file. You can avoid this in most cases, but you need to start now.
You are required to file a tax return every year. When you don’t, you are assessed a “failure to file” penalty. If you also fail to pay, you will be assessed the “failure to pay” penalty.
Many people don’t realize that the IRS charges a penalty of up to 25% just for filing your tax return late. You read that right. You will get hit with an additional 25% of what you owe if you miss the deadline for filing individual tax returns. It’s even worse for payroll tax returns. There are over 148 different types of penalties the IRS can assess – many of these penalties are substantial. The penalties can even exceed your tax liability! To add insult to injury, the IRS can also charge interest and additional penalties on the original penalty.
There is good news though. Many times we can reduce or eliminate these penalties. How? Through penalty abatement.
If you are not legally required to file a return, then you do not have to file a return. The problem is that many people who think they are not required to file a return actually ARE required to file a return. Many times, these people don’t figure it out until it’s too late.
If you think you may not be required to file a return, you should consult the IRS filing requirements.
First, we have to make sure you are in compliance and all returns that need to be filed are filed. Then, we can look to find a tax resolution plan that works for you. There are a number of solutions, but everyone’s case is different. Sometimes you are eligible for an Offer in Compromise. Other times you are eligible for a payment plan. Others, we use a financial hardship plan.
If you’d like to develop a plan for your case, call us. We can help.
