This author will discuss within this article what to with delinquent tax returns? Simply stated — Send It In! The real news and best advice is that if you have a delinquent tax return, send the tax return in as soon as possible via certified mail with return receipt requested. The IRS will mail back a little receipt a few days later showing the date and time your returns were delivered to them and who signed for it. Thus, you will have proof that they received what you mailed.
It is crucial to file a yearly tax return, regardless of your reasons why a tax return was not submitted on time: Unprepared emotionally; Procrastination; Financially cannot afford to pay taxes owed, etc. You still need to file a tax return every year.
Unfiled tax returns will be discovered. The IRS has improved its database of income transactions, making it easier for them to identify the people who should be filing returns. The IRS specifically looks for people who have not filed returns and everyone who has a savings account, earns any type of income, or has previously filed returns has a record with the IRS.
If you do not file a tax return the following will inevitably happen: The IRS will send a series of letters demanding payment; You can send your return or an appeal; If neither is received, the IRS will file a substitute return for you using the highest tax bracket; Additional exemptions or expenses you might be entitled to will not be included in the return the IRS files.
Here are just a few positive reasons to file a yearly tax return:
- When purchasing a home or financing a business, copies of filed tax returns must be submitted to the lending institution.
- Copies of filed returns are needed for students trying to qualify for higher education loans or federal aid.
- Medicare, Social Security, disability, unemployment compensation, and industrial insurance are computed based on reported income.
- Not filing and getting caught includes consequences such as interest and penalties on the original tax bill, one year in jail, and a $25,000 fine or $100,000 for corporations.
The best course of action is to contact an experienced professional tax expert to get a solid payment plan set up. The IRS will usually limit investigations to the last 6 years for people who have several delinquent returns. If you cannot pay all your taxes, still file and consult a tax professional for payment options that might be available.
For experienced and reliable tax experts contact D Tax Solutions found online at https://www.DTaxSolutions.com. The trusted and experienced Orange County tax assistance team at D Tax Solutions comprised of tax attorneys, CPAs and enrolled agents can give you immediate protection from the IRS, and help solve your IRS tax problems! Call D Tax Solutions now at 888-578-9568 for a FREE case evaluation!
There is nothing someone who has IRS tax debt wants more than to get out of debt and have IRS tax relief. Call D Tax Solutions today for a FREE case evaluation – 888-578-9568!