MULTIPLE DELINQUENT FILLINGS
A number of taxpayers are convinced that failing to file tax returns is better than filing without having any cash to pay. This idea could not be further from the reality. In case you file tax returns and you cannot afford to pay, the state is going to work with you in your favor. However if you refuse to file tax returns, you are contravening the law and you are subject to grave legal and financial penalties that can influence you Financial life.
Our competent IRS tax attorneys have over 10 years of expertise in the preparation of all types of estate taxes, personal taxes, and business taxes, as well as multiple delinquent returns. Whatsoever your situation, we will work with you to deal with your tax problems and get your life back.
Consequences of not filling a tax return
The IRS will eventually file for you and it is not a something good. They won’t delay around waiting for you to file your tax returns. They will do the filling for you after a specific period through what is known as Substitute for Return (SFR), which represents gross income, but none of the normal write offs, credits or deductions. This implies that you are accountable for a larger tax liability as much as 20% more than what you initially owed.
You will lose your chance for a refund. The law, of limitations normally limits the time IRS can make tax evaluations for three 3 years after a return is filed or due or whichever is later. This statute of limitations doesn’t commence when the state Substitute for Return is filed. A real return has to be filed before the law can commence. In the interim, you might still be in peril of IRS tax adjustments, audits of additional taxes and substantial collection attempts.
You will lose your right to access EITC. Even if you are entitled for the (Earned Income Tax Credit) you lose that right when you refuse to file tax returns.
You can be sent to prison and fined. Refusing to file a well-timed tax return and having your tax situation rise to multiple delinquent filings can result to fines of up to $20,000 and one year imprisonment for every year returns are missed.
The IRS or the state will hunt you down. The IRS will take tax evasion very gravely, and defaulters are dealt with unsympathetically. Although the IRS may not discover you instantly, they will discover you in the due course. When they get you, the interest and penalties you owe will have increased tremendously.
When you reach the position of multiple delinquent filings, it is vital to have a competent and tax attorney on your part. Failing to file your taxes can lead to bank levies wage garnishment, millions of dollars in fines, or even imprisonment. If you are in need of our services, call LA Tax Law team of competent former IRS tax lawyers now and find out what options you have for you. We will offer you with a free analysis before taking your case.