San Francisco, a city celebrated for its ambition, innovation, and diverse community, is a hub of opportunity and enterprise. Yet, beneath its iconic skyline and vibrant neighborhoods, many residents and businesses struggle with the complexities of federal and California state tax laws. This challenge can become particularly overwhelming for non-filers, exposing them to significant risks and civil and criminal tax penalties.
Depending on factors like whether you acted “willfully” (intentionally) and how many returns you have failed to file, you may need to begin preparing for an IRS investigation or criminal tax fraud charge. In other situations, correcting the issue simply by filing the missing returns may be possible. Avoiding tax penalties may be possible by demonstrating that you had a reasonable cause for not filing. However, to succeed, such arguments demand compelling evidence and careful presentation.
At the Tax Law Office of David W. Klasing, our skilled dual-licensed San Francisco Tax Attorney & CPAs for non-filers will guide you around the dangers and obstacles, enabling you to reenter tax compliance while simultaneously minimizing the risk of criminal tax exposure, audit, and negative financial impacts. Our experienced dual-licensed Back Taxes Attorneys and CPAs have nearly three decades of combined experience representing all non-filers, including individuals, corporations, partnerships, and LLCs with state or federal tax return issues. We will find ways to reduce your tax liabilities, limit the penalties or interest charges you may owe, protect your legal rights throughout any tax audit or investigative process, and fight fiercely to reduce criminal tax charges if you are accused of acting willfully.
We are here to assist if you need help getting caught up on back California or federal tax filings. Contact us online here or at our San Francisco office at (415) 287-6568.
How Can I Avoid the Risks of Not Filing Taxes in San Francisco?
Each year, the IRS receives more than 150 million tax returns filed by individuals and businesses. Despite the nearly universal obligation to file taxes, hundreds of thousands of people and companies—if not millions—fail to file. Filing a tax return is the only way to receive the refund one is entitled to, as non-filers cannot receive a tax refund and generally only have three years to file before losing a claim for a refund. Additionally, non-filers face an increased risk of an IRS tax audit or other adverse enforcement actions.
Many still fail to file despite the benefits and incentives for filing taxes and the penalties discouraging non-compliance. This can happen for various reasons:
- Traveling outside of the country and forgetting the obligation;
- Believing their income is not sufficient to file or to attract IRS notice.
However, regardless of your lack of intent to commit tax fraud, an IRS agent may still perceive your actions as part of a plan or scheme to defraud the U.S. government. This perception can lead to severe consequences, including audits, penalties, and legal action. If you are a non-filer in San Francisco, it is crucial to seek the assistance of an experienced non-filer tax attorney. They can help you navigate the complexities of tax laws, file your overdue returns, and minimize the risk of severe penalties. Don’t let the fear of failing keep you from taking the necessary steps to comply with tax regulations and protect your financial future.
How Common Are Unfiled Taxes in San Francisco?
The IRS estimates that the gap between the taxes people should pay and the taxes they pay is about $345 billion. During the late 1990s and early 2000s, the IRS studied taxpayers who failed to file and determined that approximately 10 million individuals and businesses fail to file taxes each year. This failure results in an aggregate loss of more than $7 billion annually, with some studies placing this loss as high as $86 billion.
Why Does the IRS Focus on Non-Filers?
The IRS has long known the problem of unfiled tax returns. This is why the agency took steps as early as 1992 to encourage people to come back into compliance with the tax system and punish those who failed to file. The IRS Non-filer Program enables taxpayers to come forward by:
- Creating 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) matches tax information documents filed by individuals and businesses with the IRS. The system analyzes W-2s, 1099s, and other tax documents to identify non-filers;
- Preparing 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, and the IRS rarely prepares a favorable return to the taxpayer.
You don’t have to live under the constant threat of an IRS audit, or criminal tax investigation nor do you have to go it alone to fix these issues. Our skilled dual-licensed San Francisco Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing will work ardently to resolve any tax compliance issues due to the non-filing of taxes. David Klasing has nearly 30 years of experience in handling filing back tax returns and mitigating the consequences of coming back into compliance. Call us today at (888) 564-1409, contact us online here, or reach our San Francisco office directly at (415) 287-6568 for your reduced-rate initial tax consultation.
How the Tax Law Offices of David W. Klasing Can Help Non-Filers in San Francisco
At the Tax Law Offices of David W. Klasing, we offer comprehensive support for non-filers, taking the following actions to delay or halt government enforcement while you gather the necessary information to prepare your missing returns:
Shielding Federal or California from Criminal Tax Prosecution
- Protect you from criminal tax charges related to unfiled taxes. Our dual-licensed San Francisco Tax Evasion attorneys & CPAs will protect your rights, prepare you for court hearings, manage your legal documentation, and fight to reduce your penalties if you have been charged with tax evasion, offshore tax evasion, willful failure to file a tax return, payroll tax fraud, making false statements, or other tax crimes.
Protecting Your Assets
- Shield your wages, bank accounts, and business assets from liens and eventual levy
- A tax lien is a public claim by the government to a specific asset;
- A tax levy is the actual action of the government taking your asset, such as requiring your bank, customer, or employer to remit your funds directly to the government.
- Prevent the government from seizing business assets and working capital and physically locking out employees and customers;
- Protect against adverse publicity and effects on your credit rating from liens and levies.
Audit Representation and Penalty Negotiation
- Represent you in tax audits and prevent further notices;
- Negotiate penalty abatements or reductions for tax and penalty assessments where reasonable cause can be established.
- Negotiate five-year repayment plans for any balances ultimately owed;
By providing expert legal assistance and strategic negotiation, we will ensure you receive the support and protection needed to address your tax issues effectively. If you or your small business has been selected for a tax audit in San Francisco, and you are concerned about a criminal tax investigation resulting from or occurring alongside the audit, engaging our San Francisco Criminal Tax Audit Defense Attorney+CPA and San Francisco IRS Tax Fraud Defense Attorneys + CPA services at the onset of a high-risk audit / criminal tax investigation will maximize the possibility of a favorable outcome without escalating to criminal tax charges. We have never had a federal or California audit client criminally prosecuted for tax crimes. Whether you simply forgot to file taxes one year, have failed to file in the past due to concerns about inability to pay the IRS, or need to resolve a different issue involving unfiled returns, our team can help you explore the options for correcting the problem.
Contact us at the Tax Law Office of David W. Klasing online here or by calling our San Francisco office at (415) 287-6568. Please note that our San Francisco office is by appointment only.
Our San Francisco office is conveniently located at:
1390 Market St #200,
San Francisco, CA 94102
(415) 287-6568