Unpaid back taxes can quickly accumulate interest and penalties. It doesn’t matter if you have to file tax documents late, it is still important for you to voluntarily file back taxes with the appropriate federal and/or state tax agencies. Typically, the IRS does not prosecute taxpayers who voluntarily identify their tax debt by filing back taxes. However, if the IRS determines that you are knowingly avoiding a tax debt, you could end up in court, receive jail time, a five-figure fine and the loss of all previous exemptions, including the legitimate expenses that could have been applied to your tax liability. If you have unfiled back taxes, it is important to act before the IRS completes a substitute tax return on your behalf. If you think your money may be on the line, act fast and call Dana & Fullam at (925) 626-4900 to speak directly with an enrolled agent today about your options for tax debt relief.
Individuals have their own reasons for “failure to file” but back taxes are sure to catch up with you sooner or later. Listed below are some of life’s personal challenges that often precede back taxes and unfiled tax returns:
- Job Loss – Millions of Americans have lost their jobs and some are already suffering from prolonged unemployment. Although the IRS is not likely to eliminate anyone’s tax debt, you may be able to defer your tax debt or negotiate a reasonable installment agreement while you are unemployed.
- Health Problems – The rising costs of healthcare in the United States have caused many Americans to assume unexpected tax burdens when they cash their retirement accounts early to pay their bills. These are important issues to discuss with your enrolled agent or certified tax consultant.
- Personal Business Failure – If you owned a small business that failed leaving you with major tax issues, now is the time for you to take action regarding your back taxes. It is never a good plan to wait for the IRS to bring any tax debt to your attention.
- Home Foreclosure – If you have experienced a home foreclosure on your primary residence, the government has enacted provisions to reduce the tax burden for forgiven debt on your home mortgage.
- Divorce – The IRS is not responsible for marriages gone bad; however, if you were recently divorced, contact an enrolled agent to see if you qualify for relief from part or all of your spouse’s personal debts.
Avoid the risk of finding yourself in more serious trouble and burdened with much larger interest payments and penalties. Let our certified tax expert provide you with a free quote for our IRS tax settlement services. We are the experts when it comes to finding the best solutions for settling back taxes and staying current with your tax obligations. At Dana & Fullam, our goal is to always provide “Honest Tax Information You Can Trust”. For immediate help with your back taxes, unfiled tax returns or unpaid tax debt, call us at (925) 626-4900 to discuss your solution with a qualified enrolled agent today. If you prefer to email us, use our website’s convenient Contact Us form to submit your comments for a prompt and private response.