If you have not filed tax returns for a number of years, you may be facing serious consequences. The IRS can impose failure-to-file and failure-to-pay penalties and even penalties for failure to make estimated tax deposits if you do not timely file and pay your taxes. You will also face interest for any liabilities that are overdue. The penalties and interest alone can double your tax bill in seven years.
If you do not respond to IRS notices, the IRS may prepare tax returns for you without considering your expenses and they may seize money in your bank accounts and garnish your wages. The IRS can even send someone to jail for not filing their tax returns.
Our firm knows how to contact the IRS to obtain information about your income for the years for which you have not filed a tax return. Also, the IRS will often accept estimates based on industry averages for your expenses. This information can be used to prepare your back tax returns. Furthermore, the IRS knows that records do not go back forever, and some of their policies allow you to work with them to reach a resolution even without filing all of the past due returns.
If you would like more information about how you can take care of unfiled tax returns, contact our firm today.