Filing your tax returns is the first step to start meeting your tax obligations. Fundamentally, tax returns summarize your income and expenses, a summary that you must submit to the IRS to determine your total tax liability—which the IRS will also verify. In the event that you don’t file your tax returns, the IRS reserves the right to calculate your tax liability itself—which rarely ever turns out well for non-filers.
Whatever your reason for not filing your tax returns, the IRS doesn’t look lightly at people who continuously fail to file their returns. In recent years, the agency has begun to take a strict approach to tax filing failures by imposing penalties that can raise your tax bill by as much as 25%.
If you have unfiled tax returns, it’s time that you became proactive about your unfiled tax returns before the IRS does it for you. You can speak with Empire Tax Solutions to help you manage your unfiled tax returns and can even negotiate with the IRS on your behalf to minimize the penalties imposed for delinquent tax returns. We have years of experience helping clients across the United States deal with the IRS with minimal penalties imposed in the process.
The penalties for delinquent tax returns get progressively worse with the delays in filing. Generally, the IRS follows the same process:
If you don’t file your returns on time, the IRS will send you a notice of deficiency (also known as a 90-day letter) requesting you to conduct a tax assessment. You have a 90-day period to either file your due tax returns or file a petition in Tax Court to have the notice revoked. If you do neither, the IRS will file a substitute return.
If you don’t file your tax returns, the IRS does it for you. Bear in mind that the IRS will not factor in any deductions, credits, or other tax incentives in the process—interestingly enough, the IRS actually warns delinquent filers that it’s in their best interest to file themselves. They do so because the IRS will likely give you a tax bill which is significantly high owing to the absence of any credits or deductions applied to the liability. It’s not possible for you to avoid that bill or have it revised.
In the event that you don’t make your tax payments as specified by the substitute return filed by the IRS, the agency will coercively get the payments from you. The IRS uses a wide range of forceful collection strategies to get you to pay up—these methods include wage garnishments, federal tax liens, and even prosecution over criminal tax evasion charges.
At each stage of the IRS’s pursuit for your tax returns, there are steps you can take to stop them in their tracks. At Empire Tax Solutions, we negotiate with the IRS to make it easier for you to file taxes. Whether you’re struggling to pay you total tax bill, served with a Notice Of Deficiency, or facing collective and enforcement actions—our consultants can help.
We resolve all kinds of issues stemming from the IRS’s forceful tax recovery taxes. These include penalty abatements, wage garnishment stay-orders, and even negotiating federal tax lien revocations. Get in touch with us today to learn how we can help you.