With the April 15th tax deadline approaching, you may be afraid because you know that you will owe money to the IRS that you may not be able to pay. The tax attorneys and CPAs at Moskowitz LLP can explain your options and help explore a potential solution that is right for you while following the law.
Owing money to the IRS is a scary prospect for any individual or business. This issue is one that will not go away if you do not file your tax return. Not only does the IRS know whether you have filed taxes, but they also have detailed information on what you may have made in the past year. The problem will only get worse as time goes on if you do not file a tax return on time.
Take action that could potentially result in a resolution of your tax issues by scheduling an appointment with a tax attorney or CPA at Moskowitz LLP. We have been representing clients like you for over three decades.
The IRS Penalizes You for Not Following the Law
The IRS separates your tax obligations into the following:
- Filing your tax return by April 15th (unless you seek an extension of the deadline)
- Paying your taxes by April 15th
The IRS imposes separate penalties for the failure to meet each obligation. If you do not pay your taxes by the time that they are due, the IRS assesses a penalty of .5% for each month, up to a maximum of 25% plus interest. The penalty for the failure to file a tax return is even steeper. If you do not file a tax return by the due date, the IRS will impose a penalty of 5% per month of the taxes that you owe (again, up to the maximum of 25%) plus interest for each month that the tax return is late. This penalty is in addition to the penalty for failure to pay taxes.
The IRS also maintains the right to file its own Substitute for Return on your behalf. It can do so at any time. A Substitute for Return is an unfavorable situation for the taxpayer because the amounts that the IRS uses do not include the deductions and credits that you could have taken if you filed your own return along with many other unfavorable practices such as making estimates of your income which could be very far from what you really earned.
THE IRS REQUIRES THAT YOU FILE ALL YOUR TAX RETURNS DUE BEFORE THEY WILL MAKE A DEAL WITH YOU. BUT THE IRS CAN SEIZE YOUR ASSETS AND INCOME BEFORE YOU FILE YOUR TAX RETURNS.
Further, you may be in a better position to address the amount of money that you owe once you have filed your taxes. If you owe money, you have options available that could either give you more time to pay or reduce the amount of money that you must pay. For example, you could propose an installment plan that gives you more time to pay what you owe, albeit subject to interest and penalties. If you are current on your tax returns and you are facing penalties, you may ask for a penalty abatement from the IRS.
Depending on your financial situation, you may even make an offer in compromise to the IRS that may substantially reduce your tax balance. If you were unable to pay the full amount of taxes, the IRS may accept a settlement that results in you paying less than the amount of money that you owe. However, the IRS is under no obligation to accept an OIC. The agency will certainly not consider your request if you have not filed your return.
Fulfilling your obligation to file on time is a show of good faith and perhaps a starting point for a conversation with the IRS aimed at obtaining a measure of relief. The IRS will not even begin to speak to you if there are still tax returns outstanding. Not only would you not be in compliance with the law, but the agency also does not know the full extent of your potential tax debt to even negotiate. At the same time, the IRS is more likely to initiate aggressive enforcement action if they see that you are behind on your tax returns.
In summary, you can avail yourself of potentially more options and avoid costly enforcement action when you file your tax return by the April 15th deadline. The experienced tax resolution specialists and attorneys at Moskowitz LLP want to represent you through your difficult situation.
Contact a Tax Attorney or CPA Today
You do not have to feel overwhelmed when dealing with the IRS. Turn to the knowledgeable and supportive tax attorneys and CPAs at Moskowitz LLP for help in your situation. Schedule an immediate appointment with us by filling out an online contact form or by calling us today at 888-TAX-DEAL (888-829-3325).
