All About Unfiled Tax Returns

Most people don't file tax returns because they don't have enough money to settle their taxes. Interest and penalties accrue on your tax liability, so it is multiplying quickly. What must you do to handle this IRS problem?

Not filing your tax returns is worse than filing them late and owing the IRS money. There's no criminal punishment if you can't pay your taxes but you filed, but it's a crime if you do not file at all. You will be sentenced to one year in prison or fined up to $25,000 a year for each unfiled year if you continue to not file your taxes.

The IRS has an efficient tool to determine if you've filed a tax return called the Information Returns Program or IRP.

Filing Your Return

• Gather everything together. Get your W-2's and other documents together. Request copies from the IRS if there are papers missing.
• Prepare your tax returns. You may do this on your own or employ a tax professional. A tax professional may be around to answer any questions and deal with the IRS if needed.
• Know all about tax refunds. An unfiled tax return might have a tax refund. Be prepared to let the IRS utilize the refund for payment of your tax debt and know of the time limits.
• To solve your IRS problems, negotiate an Offer in Compromise or installment agreement, or even pay your tax liabilities fully.
• Plan methods with a tax professional to avoid the same issues in the future and reduce your taxes.

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Originally posted 2008-01-30 05:19:39. Republished by Blog Post Promoter