What To Do if You Have Not Filed Your Taxes

The IRS posts on its Web site “one of the basic tenets of our tax system is the belief that all citizens must comply with the requirements to file returns and pay taxes. Taxpayers who willfully fail to file income tax returns pose a serious threat to tax administration and voluntary compliance.”

Filing taxes before the annual deadline, or later with a valid extension, is essential whether you are filing as an individual or on behalf of a company you operate. Unfortunately, some taxpayers may not fully appreciate the risks and potential penalties for failing to meet their tax return deadline. You could be subject to expensive monetary fines or even be charged with a criminal offense. If you are concerned about missing the filing deadline for your income tax return, you should work with an experienced and dual-licensed California Tax Attorney and CPA as soon as possible. At the Tax Law Offices of David W. Klasing, we are committed to rendering our legal and accounting services to clients who require assistance with managing their tax liability. Our firm recognizes that tax season could be a stressful experience for many taxpayers, and accordingly we provide legal service that meets your specific needs. The Tax Law Offices of David W. Klasing would like to inform you of common tax issues faced by non-filers that our firm could help you resolve.

How Common are Unfiled Taxes?

An estimated 20 percent of the total tax gap is created by the failure to file and non-filers of taxes. There are generally two types of non-filers: the true non-filer who has never filed taxes and a stop-filer who filed taxes for a time but ceased his or her filing and payment of taxes. These individuals are likely to face the enforcement mechanisms of the U.S. Tax Code through contact and interactions with the IRS and Department of Justice (DOJ). Taxpayers who fail to satisfy their tax filing and payment obligations are, upon conviction, subject to harsh and significant criminal and civil penalties.

The IRS estimates that the gap between the taxes people should pay and the taxes that they actually pay is about $345 billion. During the late 1990s and early 2000s the IRS studied taxpayers who fail to file and determined that more than approximately 10 million individuals and businesses fail to file taxes each year. This failure to file taxes results in an aggregate loss of more than $7 billion annually, however other studies have placed this loss at as much as $86 billion. The problem of unfiled tax returns has long been known by the IRS. This why the agency took steps as early as 1992 to both encourage people to come back into compliance with the tax system and to punish those who failed to file. The IRS Non-filer Program encourages taxpayers to come forward by:

• The IRS has created a joint task force of regulators, tax auditors, revenue officers, and special agents to locate non-filers and enforce their tax obligations.
• The IRS Information Reporting System (IRP) is used to match tax information documents filed by individuals and businesses with the IRS. The system will analyze W-2s 1099s and other tax documents to match them. Matching of information returns can be used to identify non-filers and, as part of the stop-filer program, to identify those
• The agency is authorized to prepare returns on behalf of those who fail to file or those who file false or fraudulent returns. This authority is drawn from Internal Revenue Code section 6020 As one might expect, the IRS rarely prepares a return that is favorable to the taxpayer.

These are only a few of the consequences a delinquent taxpayer can face. Other consequences include a failure to pay penalty and a failure to file penalty. If the IRS or other government agent believes that your actions were willful – a voluntary or intentional violation of a known legal duty – you could face even more serious felony tax evasion charges. The penalty for felony tax evasion includes up to a five year prison sentence and a fine of $250,000 for each offense.

The Basics About Non-Filing (Failing to File Tax Return)

Owing taxes ordinarily is not a crime, but not filing when you have a legal duty to do so is a federal misdemeanor, punishable by one year in jail for each delinquent year, plus penalties. But to do that, the IRS must first catch the person, the “non-filer.” The IRS is now much better at doing that than in the past-and, because of IRS and State monitoring systems, that track record will likely only continue to improve.

The IRS, with its vast resources, is a relentless, all-searching government agency. Some people think, “If I just don’t file a tax return, well then the IRS doesn’t have anything to monitor, and I can escape their radar.” But the IRS has software-very powerful software-to monitor 250 million people in the United States, and many others abroad who are subject to U.S. income, estate, and gift tax, to ensure that those with a tax liability do, in fact, file and pay their liability.

This software complies various and variegated pieces of information to determine whether you owe a duty to the government to file a tax return. The software will consider, for example, whether a taxpayer has stopped filing returns (or has never filed a return) by comparing information obtained from third parties against IRS records (i.e. 1099s and W-2s).

The IRS takes one’s failure to file very seriously, calling it “a serious threat to tax administration and the American economy.” For this reason, in the information age, the IRS continues to strive to harness new technology to better gather and analyze information. The Government Accounting Office (GAO), for example, constantly considers new ways of optimizing information to discover nonfilers. Recently the GAO, in its Report to the Committee on Finance before the Senate, came up with a novel plan of how it would crack down on non-filing businesses. For details, see GAO-10-950 .

You Didn’t File Taxes…What Now?

some taxpayers still fail to file taxes. The reasons for a taxpayer’s failure to file will vary. Some taxpayers fail to file taxes because they believe that their income is too modest to the IRS or California FTB to notice. Other taxpayers may believe that they do not have an obligation to file taxes for an array of reasons. Other taxpayers may simply wish to avoid the “bad news” that completing and filing taxes will mean for one’s finances.

Unfortunately for taxpayers attempting to stay off the IRS’s radar, not filing taxes is one of the least effective means of accomplishing this goal. While some taxpayers may not hear from the IRS for the first year or two of non-filing, this type of non-compliance is extremely easy for the IRS to detect because the IRS matches forms from your employer.  And furthermore, the longer the non-filing practices persist, the larger the tax problems the taxpayer will face.

The following criteria increase a non-filer’s exposure to criminal prosecution:

• Tax protesters who are unrepentant and habitually refuse to file their tax returns in the face of contrary facts, case law, and primary authority provided by the taxing authorities.
• Those who are combative and completely refuse to cooperate with the IRS.
• High-profile persons who are known in their respective communities are at increased risk because the taxing authorities may wish to make an example of them so as to scare others in the non-filer’s community into compliance.

On the bright side, even where the above criteria are met, the IRS Agents enforcing tax criminal laws are often rather selective, tending to pursue only the most egregious cases. However, to keep the public guessing, on occasion even average citizens who are not widely known in their respective communities, who are delinquent as to relatively small amounts, are occasionally criminally prosecuted.

How Important is it to the Government that You Didn’t File?

In response to the non-filer problem, the IRS has implemented a cross-functional National Non-Filer Strategy. The overall goal of this strategy is to bring non-filers back into compliance. The IRS has involved its Criminal Investigation (CI) division, which consists of agents trained in law enforcement and armed with side arms, in this program where high profile non-filers are non-responsive to outreach efforts. IRS-CI has devoted resources to identify these individuals, and in the most flagrant cases, criminal prosecution has been and will continue to be recommended.

The IRS- CI mission statement is as follows:

Criminal Investigation serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.

What Can Happen When You Don’t File Taxes?

When a taxpayer fails to file taxes, an array of consequences can be imposed following an audit or upon conviction of a tax crime. One the less serious side of the spectrum, a taxpayer can face fines for both their failure to file taxes and their failure to pay taxes. These penalties are computed for each full month or each part of a month where the tax obligation remained unfulfilled. Depending on the amount of the tax debt, these penalties and unpaid taxes can accumulate quickly.

One of the harshest consequences a tax non-filer can potentially face is tax evasion charges. Tax evasion is a felony and carries a federal prison sentence. Normally, one cannot face tax evasion charges for failures to take action or inaction. Thus, the question taxpayers sometimes ask is, “ How can I face tax evasion charges when I didn’t do anything.”

In truth, this characterization of “not doing anything” obscures the fact that prosecutors can bring tax evasion charges against tax non-filers when there is a “last affirmative act of evasion.” Essentially, a last affirmative act of evasion is any step or act that taxpayer takes to further their non-filing scheme or conceal their failure to comply with the U.S. Tax Code. Theoretically, a taxpayer who fails to file taxes for several years and then lies about it to an IRS agent could face tax evasion charges. Other acts in concert with tax non-filing that could potentially justify criminal tax evasion charges include:

• Keeping multiple sets of books.
• Making, keeping, or presenting false financial or tax documents.
• Destroying company books or records.
• Concealing assets or income
• Any handling of one’s affairs in a different manner to avoid making records of transactions.

Simple statements regarding income, sources of income, and other factors can have serious consequences when made in the context of an audit or IRS investigation.

What Happens After the IRS Identifies You as a Non-Filer?

Once a non-filer has been identified, a series of computer-generated notices are mailed to the taxpayer at their last known address. Where no response is received on the notices the case is assigned to the Collection Division of the IRS. The Automated Collection System (ACS) within the Collection Division may eventually attempt to contact a taxpayer by telephone seeking the delinquent returns. If ACS is unable to secure the delinquent returns, a Revenue Officer may be assigned to contact the taxpayer in person at their home or place of business. The Revenue Officer has the option of determining if fraud has been committed by the taxpayer, in which case a referral may be made to CID for possible prosecution.

Handling Unpaid Back Taxes

No taxpayer wants to create new instances of legal liability. However, many taxpayers inadvertently do so when avoiding taxes because of fears about how much they owe for the current tax year or for past tax years. Instead of potentially making false statements to an agent or auditor, taxpayers should consult with a tax professional regarding getting caught up on filing and tax debt relief options. Some options to reduce the burden of tax debt include:

• Tax payment plans – An array of tax payment plans are available for individual taxpayers and small businesses. Taxpayers should ensure that their plan is reasonable and tailored to their situation to increase the likelihood that it is accepted by the IRS.
• Innocent spouse relief – This type of tax relief is most commonly sought after a divorce. During divorce proceedings, one spouse may learn that the spouse who handles taxes made a number of “mistakes.” If granted, this relief can excuse a taxpayer from liability.
• Tax appeal – If you disagree with a tax determination or ruling, you have the opportunity to file an appeal. Several appeal options are available, however, time limits on when an appeal can be timely filed requires the taxpayer’s diligence and attention.
• Offer–in-compromise – This type of tax relief is rarely granted, but can excuse a taxpayer from some or all of their tax liability. Offers that consider a taxpayer’s reasonable collection potential are more likely to be accepted.

Working with a tax professional when you forget to file can help you assess whether these or other tax relief options are right for your situation and goals.

Do You File Every Delinquent Return for Each Missing Year?

If you are approached by the IRS over delinquent returns, their agents are trained to request that the non-filer file all delinquent returns without regard to the number of years or tax periods involved. On the other hand, IRS Policy Statement P-5-133 provides guidelines for the extent of retroactive enforcement in delinquency cases. Policy Statement P-5-133 provides that enforcement should not extend beyond six years, but there are instances where longer or shorter periods may be enforced.

Factors agents are instructed to consider in determining whether shorter or longer periods should be enforced are:

• Prior history of noncompliance
• Existence of income from illegal sources
• Publicity effect on the voluntary compliance of other taxpayers
• Anticipated revenue in relation to the time and effort required to determine the tax due
• Special circumstances existing in the case of a particular taxpayer and available information

Ordinarily, an IRS group manager’s approval is required for all enforcement activity that is less than or exceeds the six-year period. However, a group manager’s approval is not needed if the non-filer voluntarily files returns beyond the established enforcement period of six years.

Prior years beyond the six-year enforcement limit may still be required because of some pending IRS action. Those outstanding actions include balance due years or special monitoring activity. Lastly, when filing an Offer in Compromise after filing the delinquent returns, all of the delinquent tax returns are required to be filed in order to be eligible for an Offer in Compromise.

Inability to Collect Tax Refunds for Non-Filers

One major issue that tax non-filers face is the inability to collect their tax refund. Federal and State tax refunds are subject to varying statutes of limitations. Typically, the statute of limitations is linked to civil lawsuits and criminal cases; however, it could also be applied to late tax filings. The statute of limitations places a deadline on how long a person must perform a legal action.

The statute of limitations for collecting a federal income tax refund is three years after the original filing date. (four years for California) If a taxpayer fails to file their income tax return within these three years, the IRS will prevent the taxpayer from doing the following:

• Collecting a refund check
• Applying for tax credits
• Overpaying on taxes

There are some cases where a taxpayer may be able to delay the statute of limitations for their income tax returns. However, you should not assume that you have the option to delay your filing deadline without speaking with an experienced California Tax Attorney.

Loss of Social Security Benefits for Tax Non-Filers

Taxpayers who are self-employed and do not file an income tax return could also potentially affect their Social Security benefits. Specifically, when a self-employed taxpayer does not file their tax return, they cannot receive credits for Social Security retirement or disability benefits because their income was not reported to the Social Security Administration.

Issues Obtaining Loans for Tax Non-Filers

If you may need a personal loan or a loan for your business, you should be aware that the loan approval process could be affected by unpaid taxes. As you are likely aware, copies of recent tax returns must be provided to financial institutions and other parties when seeking a loan for a business, personal matters, or even for higher education.

There are other issues that could affect a taxpayer who fails to file their income tax return on time. If you would like to know more about exceptions that could be made for non-filers, you should continue reading and consider working with an experienced dual-licensed California tax lawyer and CPA.

Common Issues that Non-Tax-Filers Face

Each year the IRS receives more than 150 million tax returns filed by individuals and businesses. But despite the nearly universal obligation to file taxes due to the relatively low levels of income required to surpass filing threshold, hundreds of thousands of people & businesses — if not millions — fail to file taxes. Furthermore, filing a tax return is the only way to receive the refund one is entitled to because non-filers cannot receive a tax refund and, generally, only have three years to file before losing claim to a refund. Finally, non-filers face an increased risk of an IRS tax audit or other adverse enforcement action.

And yet, even in light of the benefits and incentives for filing taxes and the penalties that discourage noncompliance, people fail to file. In some instances that may have simply been traveling outside of the country and the obligation may have simply slipped their mind. In other situations, the taxpayer may not believe that his or her income is not sufficient to file or for the IRS to take notice of noncompliance. However, regardless of your lack of intent to commit tax fraud an IRS agent may nevertheless perceive your actions to be part of a plan or scheme to defraud the U.S. government.

Tax Penalties for Non-Filers

There are several penalties that taxpayers may be subject to for failing to file their income tax returns. If you are concerned about how these penalties could affect your tax liability, you should contact an experienced California Tax Attorney for unfiled taxes.

Substitute Returns

When a non-filer does not handle their past due tax returns, the Internal Revenue Service may choose to file a substitute return on their behalf. California will issue a notice of proposed assessment. However, a substitute return that is filed by the IRS will typically not consider deductions, exemptions, or other tax breaks that the non-filer qualifies for. As a result, a substitute return will often harm a non-filer rather than help them.

When preparing to file a substitute return, the IRS will often send the non-filer a “Notice of Deficiency.” This notice will indicate that a non-filer has 90 days to file a tax court petition otherwise the substitute return becomes legally collectible after 90 days even where often punitive in nature because it does not consider deductions, exemption of other tax breaks. It Is wise to hire legal representation to prevent the substitute return from becoming collectible by filing a tax court petition and to help you settle with appeals via a tax return that takes advantage of exemptions and deductions that will have been routinely denied with a substitute return.

Tax Liens and Levies

Tax liens and tax levies are other penalties that a taxpayer could face for missing the deadline on their income tax return. The IRS could place a tax lien on a taxpayer’s property if they do not pay their tax debt. The tax lien could be placed on personal property, real estate, and many other assets owned by the taxpayer.

Prior to issuing a tax lien, the IRS will assess the taxpayer’s liability and send the taxpayer a “Notice and Demand for Payment.” If the taxpayer does not respond to this notice, a federal tax lien will be placed on their property. A tax lien could be applied to property owned by an individual or property owned by a business.

When a tax lien is placed on a non-filer’s property, it could affect them in several ways. For example, creditors will likely be apprehensive about loaning money to the taxpayer or could also be concerned about whether debts will be satisfied.

If a non-filer continues to ignore their tax liability, the IRS could levy the property named in the lien. This could be devastating for a non-filer, especially if the IRS levies property that is needed to operate a business. The IRS will ordinarily property that is needed to pay off the non-filer’s assessed tax debt but will commonly sell a taxpayer’s seized assets via auction for pennies on the dollar.

Fortunately, a tax lien and levy are often a last resort for the IRS. In many cases, the IRS would be inclined to negotiate an agreement with the non-filer to pay off their tax debt. The Tax Law Office of David W. Klasing could help you begin negotiations with the IRS to manage your tax liability.

To learn more about how a non-filer may be able to claim an exception for failure to file an income tax return, you should continue reading and contact an experienced California unfiled taxes attorney today.

Failure to File Taxes Can Lead to Potential Liability without End

Within a civil context, the IRS typically has three years to audit an unfiled return. However, in instances where twenty-five percent or more of income has been omitted, the time to audit the return or to bring charges is extended to six years. However, this is not the end of the bad news. Under the continuing offense doctrine, the six year timeframe will not have run if the taxpayers engages in “willfully attempting in any manner to evade or defeat any tax or the payment thereof.” For example, if the taxpayer leaves the U.S. as a fugitive, the statute of limitations is tolled. Furthermore, it can be difficult to pinpoint when exactly the tax crime occurred. Did it occur with the filing of false return? Does the crime also continue on to when you lie about it or conceal the unfiled or false return? Thus, practically speaking, a taxpayer may have to worry for many years beyond six.

IRS Audits for Unfiled Taxes?

However you don’t have to live under the constant threat of an IRS audit nor do you have to go it alone to fix these issues. The experienced tax attorneys and CPAs of Tax Law Offices of David W. Klasing can work to resolve tax compliance issues due to the non-filing of taxes. David Klasing has more than 20 years of experience in handling filing back tax returns and mitigating the consequences of coming back into compliance. To schedule a reduced-rate consultation, call our firm at 888-564-1409 or contact us online.

California Monitoring

In addition to the IRS’s monitoring software for detecting nonfilers, there are California’s resources. California’s civil and criminal investigation functions bring additional tools to the table to help locate and prosecute nonfilers. To mention just one example, the State compares those holding a State license (a contractor’s license, or an insurance license, for example) with the licensee’s tax returns to discover any discrepancies. California assumes that each person earns the average amount of someone in that profession. Consequently, California has been known to issue proposed assessments based on the income they “expect” an average licensee to be able to earn, and also to prosecute nonfilers criminally once they are found.

Trouble Brewing for Tax Non-Filers?

A new report by the Treasury Inspector General for Tax Administration (TIGTA) revealed that the IRS is doing very little to pursue high-income taxpayers who are non-compliant in their filing of federal tax returns. TIGTA is a Treasury Department internal watchdog that provides an ongoing critique of the IRS and its processes. When TIGTA identifies a potential shortcoming of the IRS, Service officials typically attempt to rectify the situation, meaning that high-income taxpayers who have failed to file their tax returns (or pay outstanding balances) should contact an experienced tax attorney as soon as possible to develop a fact-specific plan to come into compliance.

Industry professionals and IRS officials point to the lack of resources provided to the Service by Congress. IRS funding has been steadily decreasing over the past several years, as some believe that Congress is punishing the entity for alleged targeting of conservative tax-exempt organizations. Although the TIGTA report acknowledges the diminished resources, they pointed out that going after noncompliant high-earning taxpayers was supposed to be a priority for the Service.

On a yearly basis, the IRS identifies over 7 million non-filers and has the ability to send them notices of deficiency. Non-filers are typically identified through third-party reporting, such as an employer sending the IRS record of an employee’s W-2 wages or 1099 income. Estimates indicate that the Treasury loses out on over $26 billion dollars per year in federal tax noncompliance, which represents six percent of the estimated $458 billion tax gap created by those who do not pay their taxes. Two years ago, the IRS laid out plans to ramp up its crackdown on noncompliant taxpayers, but to date hasn’t implemented any new efforts or initiatives.

Taxpayers who have failed to file their tax returns should fear the IRS response to the TIGTA report. Now that the Service’s inefficiencies have been exposed, there will likely be a strong attempt to dramatically increase collection amounts for those who are noncompliant. Additionally, when the IRS discovers that someone has failed to file their tax returns for several years, it is very possible that the case will be turned over to the IRS Criminal Investigation Division for potential referral to the Department of Justice for prosecution.

Exceptions that Allow Tax Non-Filers to Avoid Tax Penalties

There are various reasons why a tax non-filer may fail to file their taxes on time. For example, a non-filer may have misinterpreted their tax liability or falsely believed that they had more time to file their tax return. Fortunately, there are some exceptions that may permit a taxpayer to avoid tax penalties for failing to file on time.

The IRS may consider a variety of factors when determining whether a non-filer had a valid excuse for failing to file on time. For example, the IRS may look at the non-filer’s justification for missing the deadline and may look at whether the taxpayer complied with tax regulations in previous years.

The following is a list of exceptions that may allow a tax non-filer to avoid tax penalties for a late return.

Death, Serious Illness, or Unavoidable Absence

If a taxpayer died, had a serious illness, or an unavoidable absence, or is dealing with the death or serious illness of a family member, this could be used as a valid ground for a late tax filing. Under these circumstances, a taxpayer may be exempt from filing their tax return on time as an individual or on behalf of a corporation, trust, or similar organization.

Note, however, that the IRS will still consider the following factors before approving this exception to the filing deadline:

• The familial relationship between the parties in question
• The date of the decedent’s death
• The duration, severity, and dates of the taxpayer’s illness or the family member’s illness
• The date of the taxpayer’s absence and the reason for their absence
• Why the event in question prevented the taxpayer from filing
• Whether the taxpayer tried to handle their tax liability within a reasonable time after their illness or after the death of a family member

When a non-filer misses the income tax return filing deadline for a company, they must be able to show that they solely had the authority to file the tax return on behalf of the business. If another official of the company was authorized to file the income tax return, there must be a valid reason why that official did not file the return.

Natural Disasters

If a taxpayer was affected by a natural disaster, such as a fire or a similar matter, this may be enough to justify an extension for the taxpayer. When determining whether a taxpayer could receive an extension of the filing deadline, the IRS may look at the following:

• How the natural disaster affected the taxpayer’s business
• The steps taken by the taxpayer to meet the deadline
• Whether the taxpayer handled their tax debt when they were able

Inability to Obtain Records

Another possible exception that could be used by a non-filer is the inability to obtain records to file a tax return prior to the deadline. The taxpayer must be able to show that the records needed to file their return were not obtainable despite their best efforts. The following factors will be examined when the IRS considers this exception:

• Why the taxpayer needed the records to comply
• The reason the records were unavailable and what the taxpayer did to recover the records
• When the taxpayer realized they did not have the necessary records
• Alternatives available to recover the records
• Whether the taxpayer consulted with the IRS about options to file their tax return
• Documentation that explains the steps taken to secure the records

This is not an exhaustive list. There are other factors the IRS may consider when a taxpayer is arguing this exception.

Ignorance of the Law

Ignorance of the law is another exception that taxpayers occasionally attempt to utilized to avoid penalties for past due tax returns. Typically, ignorance of the law is not a valid reason that a taxpayer could avoid liability for a past due return. However, the IRS may make an exception under the following circumstances:

• The education of the taxpayer
• Whether the taxpayer was previously subject to the taxes
• The taxpayer was previously penalized for failing to file taxes
• Recent changes to tax law regulation that a non-filer could not reasonably know about
• The complexity of the compliance issue in question

There are several other exceptions that a taxpayer may utilize to explain why they missed the filing deadline. If you are unsure about whether you have a valid exception to avoid tax penalties for a failure to file your tax return, you should consult with an experienced Tax Attorney for unfiled returns.

Non-Filers: Act Quickly and Carefully to Minimize Risks

While willful failure to file is punishable by up to one year in prison for each tax year, I have never had a client, or have heard of a client in my 20 years of experience, who was prosecuted or even to be threatened with it. Remember that it costs money to prosecute and incarcerate a non-filer, and when a non-filer is sent to jail, his or her family is likely to wind up on the welfare rolls.

If you are facing penalties and tax complications due to unfiled taxes, contact our Los Angeles tax attorneys at the Tax Law Offices of David W. Klasing today. Our dedicated team of tax professionals are committed to mitigating the consequences faced by taxpayers due to unfiled taxes and other tax concerns. To schedule a reduced-rate tax consultation call our firm at (800) 681-1295 or contact us online today.

The Importance of Contacting an Experienced Tax Attorney as Soon as Possible

Although taxpayers may feel the desire to stay noncompliant in hopes that the IRS will not discover them, consulting with an experienced tax attorney about your situation will ensure that you develop the right strategy to minimize (or eliminate) repercussions for failing to file your tax returns. A tax non-filer can face up to a year in prison for each tax return that wasn’t filed. Furthermore, hefty fines and penalties can be levied for each year that taxes went unfiled and unpaid. Only a tax attorney can give you legal advice as to your rights and responsibilities when getting current with your taxes.

How Can a Tax Attorney Help You with a Failure to File Taxes?

At the Tax Law Offices of David W. Klasing, our skilled Tax Attorneys and CPAs have years of experience working with clients who have not filed their returns on time or requested an extension to get them back into IRS compliance with the most minimal amount of negative consequences. Especially if your conduct was non-willful or has yet to be referred for a criminal investigation, we can work to convince the agency that you had reasonable cause to miss the deadline and that you should not have any penalties assessed if you pay your back taxes and file the returns and any necessary documents. If civil penalties are imposed, we can try to work out a reasonable payment plan with the IRS so that you can pay the fines over a longer period of time.

If your conduct was willful, our priority as Criminal Tax Defense Attorneys will be working to ensure that you do not end up facing criminal tax charges for your actions. If you come to us before an audit or criminal tax investigation is initiated, and we work to help you correct the issue on your own, there will be a good chance that you will not face criminal tax prosecution for your actions if you strictly follow our counsel. The longer you wait to come forward, and especially if a criminal tax investigation has already begun or occurred, will make our job of staving off the filing of criminal tax charges exponentially more difficult, but not impossible. If criminal tax charges ultimately are filed against you, we can try to negotiate a deal for you to pay what you owe plus civil fines in exchange for the charges against you being dropped. If all else fails, we are ready to mount a vigorous defense on your behalf at trial or do damage control through a cooperation based defense depending upon the unique facts and circumstances of your case.

We Are Here for You

The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience in working with taxpayers who are delinquent in the filing of their federal tax returns. Our zealous advocates are ready to gather the facts specific to your situation and develop a personalized plan of action. Don’t let the threat of criminal prosecution for failure to file your taxes keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.

Experienced California Tax Attorney for Non-Filers Facing Penalties

If you are delinquent on filing an individual tax return or a tax return for your business, you should contact a skilled California Tax Attorney as soon as possible. At the Tax Law Offices of David W. Klasing, our California dual licensed Tax Attorneys and CPAs possess a wealth of experience in handling a variety of tax and accounting matters for our clients, and we would welcome the opportunity to discuss how we could help you. If you need assistance managing your past due income tax returns, call the Tax Law Offices of David W. Klasing at (800) 681-1295 to schedule your confidential consultation. You may also use our website to schedule a consultation with our dedicated California tax attorneys today.