The tax industry has its own vernacular, which can be confusing for the average taxpayer. With terms like wage garnishment, liens, and levies floating around, it can be hard to determine exactly what your issue is and what can be done about it.
Unfiled taxes can occur when taxpayers attempt to “catch up” on or deflect debt. You may be charged with unfiled taxes if you fail to provide adequate tax or financial records, file tax returns, make estimated tax payments, as well as if you have excessive dealings in cash or understatements of income.
Many taxpayers believe these behaviors can provide them with short-term relief, however, they later lead to severe financial problems as well as legal consequences. The IRS has strengthened its practices used to detect taxpayers who may be participating in fraudulent behavior.
The most immediate consequence of unfiled taxes is a failure-to-file penalty, in which they will initially charge you with 5% of your tax due. This penalty is assessed every month and can grow to a maximum penalty of 25%. If the IRS believes you have intent to evade taxes, they will enact a variety of collection efforts to ensure you pay your debts, which include, but are not limited to, tax levies, tax liens, and even criminal prosecution.
How Can I Resolve Unfiled Taxes?
The two most common options for resolving unfiled taxes is to set up a payment plan, or on select occasions, making an Offer in Compromise, a negotiated payment amount to settle unpaid debts. Many taxpayers attempt to reconcile their unfiled taxes on their own, but find it difficult and confusing due the IRS’ complicated and bureaucratic practices. As a result, you may find yourself subject to unnecessary levies or wage garnishments. Partnering with a professional tax agency to help you navigate the ins and out of the IRS is your best bet for settling your unfiled tax returns.
How Can FreshStartInfo Help?
The consequences of unfiled taxes as well as the potential for criminal prosecution pose a serious threat to your lifestyle and peace of mind. Here at FreshStartInfo, we connect you with quality tax professionals with the experience necessary to settle your unfiled taxes with the IRS. Financial freedom is possible and could only be a click away.
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