Delinquent Tax Return Preparation
Why Delinquent Filing Occurs
There are many reasons why a person has not filed all their tax returns. These reasons range from being unemployed, divorced, or because lack of tax documents needed in order to file the return. One of the bigger reasons that goes unnoticed is that a taxpayer owes money for other tax returns they filed and do not want the tax debt to increase when a new return is filed. Additionally, those that don’t want to file a tax return in fear of a larger tax debt also believe that filing a new tax return may trigger the IRS to possibly begin collection actions against the taxpayer.
Let us be direct in this point. No matter what the tax problem or what the fear is from filing a tax return it is in a taxpayer’s best interest to always file a return on time. It does not matter if the taxpayer pays the tax debt owed on the tax return or not, having tax returns filed on time versus unfiled returns is an infinitely better position to be in. Ten times out of ten there is never a benefit to having unfiled taxes.
Why They Cause a Larger Tax Bill
Many of our clients tell us in the beginning that they do not know how they owe so much in back taxes. You may think that everyone that has a tax debt will say they don’t know how they owe so much but there is truth to what they say. What most taxpayers do not realize is that the IRS will file returns on behalf of taxpayers. They usually do this to tax returns they determine would have an amount owed to the IRS if the return was filed.
In summary, it is common for tax returns that are unfiled by a taxpayer to actually be prepared by the IRS without the taxpayer’s knowledge. This often causes for a greater IRS tax debt.
We will be happy to discuss your tax problem with you. Get a free consultation with a CPA, attorney, or enrolled agent and find out what can be done in your situation. We won’t take you on as a client if we cannot help you.