UNFILED TAX RETURNS
FAILURE TO FILE PENALTIES
YOU MUST FILE
If you have not filed tax returns, you have "waived your rights". You cannot have unfiled tax returns if you want your tax debt settled. There are some people who work best under pressure and choose to procrastinate on important tasks like filing tax returns. Then there are those who simply forget to file by the April 15 deadline or they deliberately avoid doing so.
Everyone makes mistakes, especially when under the stress of gathering documentation, crunching numbers and lowering tax liabilities as much as legally possible. However, avoiding your annual tax return obligations can result in costly consequences that extend beyond your bank account.
1. Unfiled Tax Returns -
Failure to File Penalties
Considering the importance of filing
your tax return, it's fair to expect
some degree of penalty for failing to
file your taxes. If you are expecting an
income tax refund, chances are you
won't get the same level of scolding
from the Internal Revenue Service
those others who owe money
can expect to receive.
However, if you fall among the people
time to "get a hold of yourself" and get your unfiled tax returns prepared and filed as soon as possible.
The penalty for filing late (failure to file) takes effect immediately following the April 15 deadline and will typically equal 5 percent of the unpaid taxes you owe for every month you delay filing your return, up to a 25 percent cap.
A less hefty penalty of 0.5 to 1 percent of your unpaid taxes per month applies to taxpayers who file by the deadline, but owe taxes and don't pay up. Even if you can't afford your taxes now, it's best to at the very least file your tax return on time.
Those who both file late and fail to pay for the taxes they owe are charged a maximum penalty of 5 percent of their unpaid taxes for every month the bill is late.
2. Delayed Reimbursement
With spring vacations around the corner, you'll likely want to keep all the money you can. Those who wait beyond the eleventh hour to file taxes and claim their refunds may not only get dinged with a late filing penalty but holding up refunds does an equal disservice.
Ever hear people preach about not giving Uncle Sam an "interest-free loan?" By failing to file your taxes on time, you're only prolonging this financial injustice against your wallet. Essentially, you’re giving up the ability to save or invest that money at a higher return.
3. Forfeiture of Tax Refund
Just because you don't owe the IRS money doesn't mean you can keep your refund on hold indefinitely. When you're owed a reimbursement from the government, the IRS is in no rush to pay you back. In fact, Uncle Sam will give you three short years after the tax year for which you filed to claim your back tax refund.
When this "refund window" is closed, the IRS will consider your unclaimed refund a generous "donation," and you'll be out of your rightful cash.
If you had taxes taken out, why would you want to lose that money should you have a refund coming back?
4. Substitute for Return (SFR)
Taxpayers who fail to submit their tax return by the deadline (or extension deadline, if applicable) aren't in the clear yet. In fact, the IRS will attempt to contact delinquent tax filers repeatedly and remind them to file their tax returns.
If their efforts fail, the IRS reserves the right to file what is called a "Substitute for Return" on behalf of the filer.
A SUBSTITUTE FOR RETURN IS NOT A TAX FILING,
IT IS A WAY FOR THE IRS TO CREATE A TAX BILL.
The form calculates the amount of taxes owed based on taxable income, plus any applicable failure to file penalties. Payments made to self-employed individuals are used in Substitute for Return (SFR) computations, as are dividends paid on investments.
A Substitute for Return isn't necessarily conducted in filers' best interest. This course of action does not take into account tax credits and deductions that may reduce your taxable income, which means you may be overpaying on your taxes in the end.
If you receive a bill from the IRS indicating that it performed an SRF, you can still file your tax return to claim your deductions and expenses. The IRS usually will make the appropriate corrections.
5. Arrest - YES, YOU CAN BE ARRESTED FOR FAILURE TO FILE TAX RETURNS.
Remember this: IT IS NOT AGAINST THE LAW TO OWE A BACK TAX DEBT. IT IS AGAINST THE LAW NOT TO FILE A TAX RETURN.
The consequences for ignoring an IRS bill can be disastrous for you. . After sending multiple correspondences regarding an unpaid tax bill, the IRS will send a representative to your residence or business to collect payment – typically if you owe $25,000 or more.
Continuing to avoid this responsibility can result in automatic tax levies (wage garnishments, bank levies and asset seizures like your car and may even lead to arrest and jail time for tax evasion.
At the end of the day, you're better off filing your tax return late than never filing it – or paying your taxes – at all.
FACT: YOUR TAX DEBT CREATED
BY A SUBSTITUTE FOR RETURN
CAN HAVE THE FAILURE TO FILE
Our IRS tax relief program team of Tax Lawyers can have your Substitute for Return reversed and have you compliant with tax law in a very very short period of time. Doing this will allow our tax professionals to stop tax levies, an IRS garnishment, remove tax liens and possibly settle your tax debt.
THERE IS GREAT NEWS FOR YOU:
Our tax professionals will prepare
missing and unfiled tax returns quickly and
correctly. Filing your unfiled tax returns
will restore your rights with the IRS and
will significantly reduce your tax debt.
Our team of tax professionals
will protect you from IRS enforcement
for a very affordable flat fee.
GET YOUR UNFILED TAX RETURNS
PREPARED AND FILED TODAY!
UNFILED TAX RETURNS IN SAN DIEGO, LOS ANGELES, CALIFORNIA, TEXAS, NORTH CAROLINA, GEORGIA, MID-WEST, EASTERN SEABOARD,
FAR-WEST AS WELL AS THE ENTIRE UNITED STATES.
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