Awards & Recognition
U.S. taxpayers face a relatively unique form of taxation. As one of only two nations in the world to tax in this fashion, the United States taxes on the basis of one’s citizenship. This obligation gives rise to a duty to not only file taxes yearly, but also to make a quarterly or annual tax payment. When these payments are not made, you may find yourself needing the services of an experienced Orange County unfixed tax lawyer and CPA to help resolve the situation. Beyond the duty to file and pay taxes, U.S. taxpayers must also satisfy a number of disclosure laws that require U.S. taxpayers holding foreign accounts and foreign assets to make account disclosures if they hold assets in excess of reporting thresholds.
That is, in light of additional disclosure requirements, it can be extremely difficult to comply with all aspects of one’s tax obligations. Since even an inadvertent error can create huge penalties and adverse tax consequences, it is often prudent to seek the advice of a tax professional to maintain your compliance. If you are already facing tax charges, an experienced tax attorney can advocate and negotiate on your behalf to reduce the consequences you face.
Is there a Penalty for a Unfiled Tax Returns?
Yes, there is penalty for both the failure to pay taxes and to file taxes. Furthermore, the penalty for the failure to pay and the failure to file are different. The duty to file taxes exists for most citizens and legal permanent residents because the income threshold that triggers an obligation to file is so low. While the filing threshold varies with the filing status and age of the taxpayer, the trigger to file is only $10,150 for a single taxpayer under the age of 65. Furthermore, most people will file because even if you do not meet the income threshold, the only way to receive a refund is by filing taxes.
The failure to file taxes arises where the individual has a duty to file taxes and fails to do so by the original deadline or, if an extension was filed, by the extended due date. Taxpayers who are at risk of missing the original due date may file for an extension of time by filing IRS Form 4868, Application for Automatic Extension of Time to File. By filing form 4868, the taxpayer can receive an additional 6-month extension of time to file. However it is essential to not that an extension of time to file is not an extension of time to pay. Taxpayers who expect to owe taxes to the IRS must make an estimated payment, or have a valid excuse, to avoid late payment penalties. However taxpayers who pay, at least, 90 percent of their tax liability by the original due date and the remaining balance by the extended due date can avoid penalties.
If an individual fails to file, the can face a 5 percent penalty on the outstanding tax bill for each month or part of a month where the tax filing was late. For instance, even if you file early in the month a penalty for the entire month will be assessed because the IRS considers even one day of lateness to count for the entire month. The failure to pay taxes can be punished by a .5 percent penalty can be imposed.
U.S. Taxpayers Must Also Disclose Foreign Accounts
Secret bank accounts held in traditional and non-traditional tax havens are no longer acceptable due to the disclosure obligations created by FATCA and the Bank Secrecy Act’s FBAR disclosure obligation. Under FATCA, taxpayers must disclose certain foreign accounts or assets or face harsh penalties. The disclosure thresholds for FATCA vary and are based on the taxpayer’s filing status and presence in the United States during the tax year. By contrast, the reporting threshold for FBAR is consistent. All taxpayers are subject to a $10,000 disclosure threshold. The failure to disclose inadvertently or willfully can result in harsh tax consequences. The failure to file FBAR by error can result in the imposition of a $10,000 penalty. If the failure to file FBAR is believed to be intentional or voluntary, a penalty equal to the freater of 50 percent of the account balance or $100,000 can be imposed. Because penalties are typically imposed for multiple years, fines can easily surpass the account’s original value.
Rely on Our Tax Attorneys When Facing A Civil or Criminal Tax Investigation
If you are facing serious tax charges, the stakes are too high to challenge the IRS and Department of Justice alone. The experienced Orange County unfiled tax lawyer and accounting professionals of the Tax Law Offices of David W. Klasing are dedicated to standing up to the IRS for taxpayers under investigation or charged with serious tax crimes and violations. To schedule a reduced-rate consultation, call our firm at (949) 681-3502 or 800-681-1295 or contact us online today.
U.S. taxpayers face a relatively unique form of taxation. As one of only two nations in the world to tax in this fashion, the United States taxes on the basis of one’s citizenship. This obligation gives rise to a duty to not only file taxes yearly, but also to make a quarterly or annual tax payment. When these payments are not made, you may find yourself needing the services of an experienced Orange County unfixed tax lawyer and CPA to help resolve the situation. Beyond the duty to file and pay taxes, U.S. taxpayers must also satisfy a number of disclosure laws that require U.S. taxpayers holding foreign accounts and foreign assets to make account disclosures if they hold assets in excess of reporting thresholds.
That is, in light of additional disclosure requirements, it can be extremely difficult to comply with all aspects of one’s tax obligations. Since even an inadvertent error can create huge penalties and adverse tax consequences, it is often prudent to seek the advice of a tax professional to maintain your compliance. If you are already facing tax charges, an experienced tax attorney can advocate and negotiate on your behalf to reduce the consequences you face.
Is there a Penalty for a Unfiled Tax Returns?
Yes, there is penalty for both the failure to pay taxes and to file taxes. Furthermore, the penalty for the failure to pay and the failure to file are different. The duty to file taxes exists for most citizens and legal permanent residents because the income threshold that triggers an obligation to file is so low. While the filing threshold varies with the filing status and age of the taxpayer, the trigger to file is only $10,150 for a single taxpayer under the age of 65. Furthermore, most people will file because even if you do not meet the income threshold, the only way to receive a refund is by filing taxes.
The failure to file taxes arises where the individual has a duty to file taxes and fails to do so by the original deadline or, if an extension was filed, by the extended due date. Taxpayers who are at risk of missing the original due date may file for an extension of time by filing IRS Form 4868, Application for Automatic Extension of Time to File. By filing form 4868, the taxpayer can receive an additional 6-month extension of time to file. However it is essential to not that an extension of time to file is not an extension of time to pay. Taxpayers who expect to owe taxes to the IRS must make an estimated payment, or have a valid excuse, to avoid late payment penalties. However taxpayers who pay, at least, 90 percent of their tax liability by the original due date and the remaining balance by the extended due date can avoid penalties.
If an individual fails to file, the can face a 5 percent penalty on the outstanding tax bill for each month or part of a month where the tax filing was late. For instance, even if you file early in the month a penalty for the entire month will be assessed because the IRS considers even one day of lateness to count for the entire month. The failure to pay taxes can be punished by a .5 percent penalty can be imposed.
U.S. Taxpayers Must Also Disclose Foreign Accounts
Secret bank accounts held in traditional and non-traditional tax havens are no longer acceptable due to the disclosure obligations created by FATCA and the Bank Secrecy Act’s FBAR disclosure obligation. Under FATCA, taxpayers must disclose certain foreign accounts or assets or face harsh penalties. The disclosure thresholds for FATCA vary and are based on the taxpayer’s filing status and presence in the United States during the tax year. By contrast, the reporting threshold for FBAR is consistent. All taxpayers are subject to a $10,000 disclosure threshold. The failure to disclose inadvertently or willfully can result in harsh tax consequences. The failure to file FBAR by error can result in the imposition of a $10,000 penalty. If the failure to file FBAR is believed to be intentional or voluntary, a penalty equal to the freater of 50 percent of the account balance or $100,000 can be imposed. Because penalties are typically imposed for multiple years, fines can easily surpass the account’s original value.
Rely on Our Tax Attorneys When Facing A Civil or Criminal Tax Investigation
If you are facing serious tax charges, the stakes are too high to challenge the IRS and Department of Justice alone. The experienced Orange County unfiled tax lawyer and accounting professionals of the Tax Law Offices of David W. Klasing are dedicated to standing up to the IRS for taxpayers under investigation or charged with serious tax crimes and violations. To schedule a reduced-rate consultation, call our firm at (949) 681-3502 or 800-681-1295 or contact us online today.
Orange County Tax Law Offices
For any of your tax planning compliance and controversy needs in Orange County, contact the Lawyers at The Tax Law Offices of David W. Klasing today. Our experienced Tax Lawyers offer a reduced-rate consultation on new cases or engagements. Call (949) 681-3502 or 800-681-1295 or contact us online today to schedule a reduce rate initial consultation at our Orange County tax law offices, or at one of our other convenient locations across Southern California.
