UNFILED TAX RETURNS
From the viewpoint of the IRS, failure to file a required tax return is tantamount to tax evasion, a criminal infraction punishable by fine of $10,000 and one year of imprisonment for each tax year to which such failure applies. As long as you meet the prescribed requirements to file, you are obligated to do so, regardless of whether you would owe tax or be entitled a refund. Although it is certainly within the authority of the IRS to impose criminal prosecution on taxpayers who fail to file their tax returns, a long-standing practice of the IRS has been to resist that course of action, provided that the taxpayer voluntarily files, or makes arrangements to file, before being notified that they are under criminal investigation. For whatever reasons that you have unfiled tax returns, your foremost directive in the resolution of your tax problem is to file them. Becoming compliant with your tax obligations is an absolute necessity before the IRS will even bother to address any resolution offer. As challenging an assignment as it may seem, the experts at Tax Muscle have bountiful experience in helping people become IRS compliant, forging the way to contentment and financial freedom.
The little-known truth is that if you fail to file a required tax return, the IRS will likely prepare it for you. However, the return prepared by the IRS - known as a Substitute for Return (SFR) - may not give credit for deductions and exemptions that you would otherwise be eligible to receive. The end result is an understatement of your deductions and, by definition, an overstatement of your tax, which will be billed to you with added penalties and interest.
Neither the expiration of time nor the imposition of an SFR will exclude your right to prepare and file your own original return(s). Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return as quickly as possible to make sure that you take advantage of all the exemptions, credits, and deductions that you are allowed, and to avoid additional penalties and interest. The IRS will generally adjust your account to reflect the correct figures.
Tax Muscle will bring you into compliance with the IRS by preparing and filing all of your delinquent tax returns. Once that requisite is satisfied, our tax experts can work toward the favorable resolution of your tax problem with no further obstruction.
Every Taxpayer Has A Right To Tax Representation
If you have been contacted by the IRS or State Taxing Agency, or are facing enforced collection action or the threat of such action, then let Tax Muscle do the heavy lifting and resolve your tax problem for good. Call 855.829.6875 today for your free 15 minute tax debt consultation.