5 Reasons to File Delinquent Tax Returns

  1. If you have income, you should be filing a tax return

Not filing your tax returns is not just bad financial planning, it can be deemed a criminal act by the IRS. It is punishable by a year in jail and a $10,000 fine for each tax return that is not filed. Sure, you may think you’re getting away with not reporting your income, but think about. Chances are whoever you work for, or are doing business with is most likely reporting the money they give you as a business expense to the IRS. In fact, they usually let you of the amount they reported to the IRS in the form of a 1099 or W-2. Sometimes taxpayers don’t file because they no longer have income records for the delinquent tax years. If this is case, the feel free to call 773-609-4TAX or visit http://www.truetaxresolutions.com for a free no obligation consultation with licensed tax professional and we can go over your options for obtaining the financial records necessary to file your tax returns up to date.

  1. Avoid extra penalties

When you do not file a tax return on time, you automatically open yourself up to additional penalties. A few of the penalties I most commonly see with clients who have not filed tax returns tax returns are late filing penalties, late payment penalties, and penalties for not pre-paying taxes. Bear in mind the penalty for not filing your tax return is 25%, and when you start tacking on additional penalties and interest you have the makings of a sizable tax debt. If you work or are in business for yourself I recommend you always file a tax return on time, even if you don’t have the cash on hand to pay the tax debt in full. When you file on time you will at least avoid the late filing penalty.

  1. Do not let the IRS file your taxes for you

You may not be aware of this but if you do not file a tax return the IRS will sometimes file one on your behalf. This process is known as Substitute for Return. Although it may seem nice of them to file your tax return for you, please be advised they usually only do it to start the collections process. The reasoning behind this is since you did not file a tax return, there is technically no balance yet and therefore nothing for the IRS to collect on. So, by them filing the tax return for you, they create and balance that they can then collect on. There are several disadvantages to having the IRS file your taxes for you namely is that they do not consider such credits as the earned income credit, business expenses, marital status, and dependents among others. This often results in a higher amount owed in taxes.

  1. You may be owed tax refunds

If you are a W-2 employee who has taxes withheld from your paycheck or a self-employed person who makes quarterly estimated tax payments, there is a chance you paid more taxes than you owe. If this is the case and you don’t file a tax return you are just leaving money on the table. Even if you have not filed a tax return in years you can recover tax refunds for up to three years back. If you are due tax refunds I recommend you visit http://www.truetaxresolutions.com or call 773-609-4TAX to get them filed as soon as possible.

  1. Compliance is key 

Filing any missing tax returns is usually the first step in fixing a tax problem The IRS and most states require all missing tax returns before they will consider entering an installment agreement or a tax debt settlement. Therefore, unless you a very low income, or only receive social security income you need to be filed up to date to enter any tax debt relief programs. If you need to file delinquent tax returns I recommend you don’t put it off any longer, in most cases ignoring a tax problem just leads to more penalties and interest.

                                                                                                                       Authored by:

                                                                                                           Harold Pena-Hayes, E.A.

                                                                                        President of True Tax Resolution Inc.

 

Top 5 Ways To Fix A Tax Problem: Tax Debt Relief

taxhelptruetaxresolutions.com

Top 5 Ways to Fix a Tax Problem:  Tax Debt Relief

 

 

  1. File Missing Tax Returns The truth of the matter is the IRS and most states require all missing tax returns to be filed before a taxpayer can be put into a tax resolution. So the first step in fixing many tax problems is to start with fulfilling any outstanding filing requirements. Once you are compliant with filing requirements you will know if you owe taxes, how much you owe in taxes, or if you are due a tax refund. If you need to file missing tax returns, or have questions about obtaining old income information to fix a tax problem you can call True Tax Resolutions Inc at 773-609-4TAX for help.
  2. Tax Debt Settlement or Offer in Compromise In some cases, when a taxpayer cannot pay off a tax debt in full. The IRS and some states will allow a tax payer to pay less than what they owe, sometimes significantly less. The bulk of these programs are based on income and assets, and require extensive paperwork so if you need professional help go to http://truetaxresolutions.com for a free consultation.
  3. Payment Plans or Installment Agreements If a tax payer does not have all the money on hand to pay off a tax debt in full. The IRS and most states allow for an agreement to be negotiated which allows for repayment of the tax debt in monthly installments.
  4. Partial Payment Plans or Partial Payment Installment Agreements There are some instances where a taxpayer has the ability to pay back part of a tax debt, however not all of it. In these cases, the IRS and some states allow agreement to be negotiated where the taxpayer can make smaller payments on the tax debt in order to avoid things like wage garnishments, and bank levies. These payments will not pay off the balance in full, and that is the upside of these agreements.
  5. Hardships The IRS and some states have programs available for taxpayers that have tax debts, but do not have the ability to pay off the tax debt. These programs are based on using a taxpayer’s low income and/or lack of assets to demonstrate an inability to pay. Once an inability to pay the tax debt has been established the IRS or state will cease most collection activities.

 

                                                                                                                                                                                                                 Authored by: Harold Pena-Hayes, E.A.

                                                                                                                                                                                                                                                President of True Tax Resolutions Inc.

 

True Tax Resolutions is a company dedicated to providing the highest caliber of tax help services to the business and individual taxpayers of America. Whether your issue is with the IRS or the State we can help you. We help businesses and Individuals file current and past due tax returns. Additionally, we help clients with tax debt settlement, tax debt payment plans, wage garnishment removal, levy lifts, and obtaining hardship status. Go to http://truetaxresolutions.com Call 773-609-4TAX or email truetaxresolutions@gmail.com for a free no obligation consultation with a tax professional.

 

 

 

 

 

 

Tax Help: IRS Debt Settlement

TrueTaxResolutions.com

Many American Taxpayers are living today in the shadow of IRS Debt. Whether they have not filed

a tax return in years, or they have a balance that they try not to think about. The tough thing is, it’s hard to put things like penalties, interest, bank levies, and wage garnishments out of mind. It is enough to give a taxpayer undue stress and worry. 

The good news is the IRS allows you to obtain help from licensed professionals in order to streamline the Debt Settlement, Hardship, and Payment Plan process. If you need tax relief, feel free to contact True Tax Resolutions Inc. You can go to truetaxresolutions.com or call 773-609-4TAX for a free no obligation phone consultation with a licensed Enrolled Agent.

True Tax Resolutions is a company dedicated to providing the highest caliber of tax help services to the business and individual taxpayers of America. Whether your issue is with the IRS or the State we can help you. We help businesses and Individuals file current and past due tax returns. We also help clients with tax debt settlement, tax debt payments plans, wage garnishment removal, levy lifts, and obtaining hardship status. Call 773-609-4TAX or email truetaxresolutions@gmail.com for a free no obligation consultation with a tax professional.