Understanding Back Taxes and the Implications of Unfiled Tax Returns
An individual or business might find themselves with unfiled taxes for countless reasons. However, knowing that the IRS has improved its methods to detect non-filers is critical. If they haven’t contacted you yet, it’s only a matter of time. The consequences for neglecting this duty can be severe.
When you don’t file a tax return, it’s considered a misdemeanor, leading to up to a year in jail and hefty fines that vary depending on whether it’s an individual or a corporation. If you’ve missed filing for multiple years, each year counts as a separate offense. This fact alone highlights the urgency of seeking assistance for unfiled tax returns as soon as possible.
It’s tempting to think you can avoid detection by ignoring the problem. However, this approach is fraught with risks. The repercussions can range from potential criminal charges and civil penalties to wage garnishments and even bank account levies. On top of that, the IRS might file a substitute return on your behalf, which might not be in your best interest. They also have mechanisms to enforce tax collection.
Fortunately, there’s a silver lining. The IRS tends to be understanding towards those actively seeking to rectify their unfiled tax returns. Individuals and businesses with overdue tax returns can benefit from the IRS Voluntary Disclosure Filing Program, enabling them to rejoin the tax system without fearing a criminal investigation.
There’s also the potential upside that, upon filing, you might discover you’re eligible for a tax refund. Avoiding the situation could be forgoing money that rightfully belongs to you.
The IRS may offer an installment plan to settle back taxes for those apprehensive about unfiled returns due to potentially owed money. With guidance from a tax lawyer, you can discuss a feasible payment plan without drastically altering your standard of living. Additionally, a tax attorney can explore whether you’re eligible for an offer in compromise or another tax liability solution.
If you’re in New Jersey and facing such tax controversies, Todd S. Unger, a reputable tax lawyer, has assisted numerous clients in similar predicaments. He can guide you in collating the required financial data, completing the necessary IRS documentation, and negotiating a resolution tailored to your individual or business needs. (877) 544-4743