Do you have an urgent need to file your tax returns? Has the IRS filed a tax return for you, claiming you have a huge tax bill?
There are numerous practical reasons to file tax returns. Whether buying a home or financing a business, copies of filed returns must be submitted to the lending institution. Important programs like federal aid to higher education also require applicants to submit copies of tax returns to qualify for loans. And the filing of tax returns has a tremendous impact on the future. Social Security retirement and disability benefits as well as Medicare are all computed based on a person’s lifetime earnings reported to the IRS and the Social Security Administration. State benefits such as unemployment compensation and industrial insurance are also based on reported income.
For various reasons, you may not have filed your federal income tax return for this year or previous years. You may not have known whether you were required to file. You may not have filed because you owe additional tax that you cannot afford to pay in full. You may not have filed because you expect a refund and just have not taken the time to complete the return.
When the next year’s return is due, the taxpayer faces a dilemma. Will filing call attention to them? What about the forms needed to prepare the earlier return? What about the financial burden of paying taxes due in previous years? What if they have lost some of the records needed to prepare the earlier return? There is also the stress of worrying about being discovered by the IRS.
If you are not sure you are required to file a return, give us a call and we can tell you almost immediately. If you cannot pay all of the tax due on your return, we may be able to assist you with arranging payments by setting up an installment agreement.
The IRS continues to improve its database of income transactions and increase its ability to identify people who have a filing requirement but have failed to file a return. Eventually, contact will be made and the correct tax liability computed. By this time, however, the original tax bill will be multiplied many times by the addition of interest and penalties. The IRS also has a wide range of civil and criminal sanctions available that can be imposed on persons who fail to file returns. From any perspective, the consequences of failing to file returns are just not worth it!
Has the IRS already garnished your wages or emptied your bank account? Did it seem that The IRS took more than they should have? Your may be right. If you have not filed your tax returns and have allowed the IRS to File them for you, then you may be paying more than you owe. The IRS will use only the income information that has been provided to them by your employers, banks, title companies and investment bankers, to determine your tax based only on the income reported. You will not be given credit for allowable deductions you are entitled to.
Failure to file your return on or before the due date may result in penalties and interest. If your return was not filed by the due date (including extensions), you may be subject to the failure to file and failure to pay penalties. However, if you filed on time but did not pay in full, you will be subject only to the failure to pay penalty. Interest is charged on taxes not paid by the due date, even if you have an extension of time to file. Interest is also charged on penalties.
Call (877) ETAX-FIX (382-9349) to get your delinquent tax returns prepared now.