Multiple Delinquent Filings
Multiple Delinquent Filings
Some taxpayers believe that not filing a tax return is better than filing one without, having the money to pay. This belief couldn’t be farther from the truth. If you file a tax return and can’t afford to pay what you owe, the IRS will work with you. But if you fail to file a tax return, you are breaking the law and are subject to serious financial and legal penalties that can affect you for the rest of your life.
Our professional IRS tax attorneys have over 15 years of experience preparing all types of personal taxes, estate taxes and business taxes, including multiple delinquent returns. Whatever your situation, we’ll work with you to tackle your tax issues and get you back on your feet. Contact us to speak with an IRS lawyer today.
The Results of NOT Filing a Tax Return:
The IRS will file for you – and that’s not a good thing. They will not sit around waiting for you to file a tax return. In fact, they will file on your behalf after a certain period of time through what is called a Substitute for Return (SFR), which reflects gross income, but none of the typical write offs, deductions or credits. This means that you are responsible for a larger tax liability – as much as 25% more than what you originally owed.
You lose your right to a refund. The statute, of limitations generally limit the time the IRS can make tax assessments to within three years after a return is due or filed, whichever is later. The statute of limitations does not begin when the IRS Substitute for Return is filed. An actual return must be filed before the statute can begin. In the meantime, you may still be in danger of IRS tax audits, adjustments of additional taxes and considerable collection attempts.
You lose your right to the EITC. Even if you were eligible for the Earned Income Tax Credit, you forfeit that right when you fail to file a tax return.
You can be fined and go to prison. Failing to file a timely tax return and having your tax situation escalate to multiple delinquent filings can result in fines up to $25,000 and one year of prison time for every year of returns that was missed.
The IRS will track you down. The IRS takes tax evasion very seriously, and offenders are dealt with harshly. While the IRS may not find you immediately, they will find you eventually. When they do, the penalties and interest you owe will only have increased.
When you get to the point of multiple delinquent filings, it’s critical to have an experienced tax attorney on your side. Neglecting to file your taxes can lead to wage garnishment, bank levies, thousands of dollars in fines, and even prison time. If you’re in over your head, contact Strategic Tax Lawyers LLP’s team of IRS tax lawyers today to find out what options are available. We’ll provide you with a free analysis before taking your case.
Call 1-800-NOW-IRS-LEVY or (800) 669-4775.
The United States Department of Labor has a helpful Delinquent Filer Q&A page. Find out what the DFVCP is. If you’re looking to find out what your state has to say about multiple delinquent filings, head to Google and do a search.