You are probably a conscientious person who completes his or her work prior to, or at least by, the deadlines. But, for whatever reason, completing this year’s tax filing obligation on time was simply beyond your reach. Perhaps you are dealing with a medical issue in the family that distracted you from your taxes until it was too late to complete a filing. Alternatively, maybe you simply couldn’t find or did not receive all of the W2s, 1099s, and other financial statements you needed to complete your filing on time. You might have been traveling and were out of the country during the height of tax filing season, and did not receive reminders to file your taxes.
Regardless of the reason or reasons behind why you were unable to file your taxes on time, it is essential that you address the obligation as soon as possible. Let’s face it: it’s human nature to procrastinate even further once a deadline has passed. The problem is the IRS will not forget that you failed to file, and failures to file taxes are readily identifiable and often met with penalties and interest on the unfiled and unpaid taxes.
The tax attorneys of the NewPoint Law Group can assist taxpayers who have unfiled taxes from this year or previous years. We can explain your tax filing options to correct your non-filing status, come into compliance with the U.S. Tax Code, and potentially claim tax refunds from previous years. To schedule a confidential tax consultation, call 1-800-358-0505 today or contact us online.
A Failure to File Taxes Is Readily Identifiable by the IRS
Many people rationalize their failure to file or their late filing on the basis that their records are simply a needle in a haystack. They may justify it in terms of their small contribution to the overall tax revenues, or that the IRS is more concerned with going after “big fish.” Other people may think that the cash nature of their business gives them more leeway to avoid filing or understate their income for tax minimization purposes. Unfortunately, these assumptions are at best half-truths, and at worst justifiable, which only encourages behavior that leads to long-term liability and risks.
The IRS engages in practices known as form-matching and information-matching. Form-matching is based on the premise that both the employer and the employee submit corresponding W2s or other tax forms to the agency. If the IRS only receives a single copy of the form, it is likely that one party has failed to file. The information-matching process ensures that individuals who do report do so accurately. The IRS matches the numbers on each form to confirm that parties are not understating income. Those who think the cash-based nature of their business provides protection should rethink this assumption. The IRS is well-aware of the added potential for fraud and abuse that cash presents. The agency has developed audit guides and practices specific to businesses of this type. Without belaboring the details, it is safe to say that if the IRS suspects fraud, the policies and practices they can engage in will be painful and unfavorable for the taxpayer.
How Do I Fix Unfiled Taxes?
For every situation where a taxpayer has failed to file all or some taxes, the solution is based on the exact circumstances and scenarios. Since advice can only be rendered after a careful analysis of your finances, it is safe to say that there is no one-size-fits-all recommendation to fix past unfiled taxes. That being said, taxpayers who do not take action and consult with an experienced tax attorney are likely to face potential tax penalties like failure to file, failure to pay, etc. What’s more, the statute of limitations does not begin to run when you fail to file taxes. This can theoretically lead to perpetual liability for the unfiled taxes.
Therefore, it is essential to work with a tax lawyer to devise an individualized strategy so he or she may correct your unfiled tax situation. However, we can say that correcting unfiled taxes does generally involve submitting filings for relevant years where non-filing status exists. All situations regarding unfiled taxes should be approached strategically. A failure to consider all relevant facts and circumstances can result in a less than optimal handling of the tax concern.
Our Sacramento, California Tax Attorneys Can Look into Your Unfiled Taxes
You may wish to avoid thinking about unfiled taxes and the impact your failure to file and/or pay taxes can have on your life. But, failing to address them in a timely manner will only further exacerbate the situations and penalties you may face. The strategic Sacramento tax attorneys of the NewPoint Law Group can assist with fixing unfiled taxes and bring you into compliance with the tax code. To schedule a confidential consultation, call 1-800-358-0505 today or contact us online.