Awards & Recognition
The Tax Law Office of David W. Klasing
The Internal Revenue Service (IRS) received and processed more than 103 million tax returns in 2017. However, while that number may seem large, there are still millions of taxpayers who fail to file and pay taxes each year: approximately seven million, or about 5% of the population. If you are among the millions of taxpayers who failed to file a tax return this year, failed to file in previous years, or owes unpaid tax debts to the IRS, it is crucial to address and resolve the issue as soon as possible. Because penalties and interest accumulate with time, delays can lead to larger losses and expenses for the taxpayer and in certain situations non- filing can result in criminal tax charge exposure.
Fortunately, if you have found yourself in this position, you do not have to deal with the IRS or a state taxing authority on your own. At the Tax Law Offices of David W. Klasing, our unfiled tax return lawyers have more than 20 years of experience helping San Bernardino and California residents, out-of-state taxpayers, and even citizens abroad catch up on unfiled taxes. Our tax professionals will work to ensure that the process is as financially painless as possible, taking strategic action to minimize the penalties you face while providing trustworthy, up-to-date guidance on all aspects of U.S. and California tax law under the U.S. Tax Code and Tax Cuts and Jobs Act (TCJA). For a reduced-rate consultation about getting help with back taxes, contact our tax firm online, or call today at (800) 681-1295.
Penalties for Failure to File or Pay Taxes
“Back taxes” is a broad term that refers to unfiled tax returns and the associated unpaid tax debts. Unfortunately for taxpayers, both are serious issues, regardless of whether the back taxes are associated with local/municipal taxes, state taxes, or federal taxes. Unfiled or unpaid income taxes, payroll taxes, or other types of taxes can all generate civil penalties.
If the failure to file or failure to pay was “willful,” or deliberate, or Spies Evasion Factors exist, the back taxes could even lead to a criminal investigation for tax evasion or related tax fraud offenses. Under 26 U.S. Code § 7201, “Any person who willfully attempts… to evade or defeat any tax… or the payment thereof shall… be guilty of a felony and, upon conviction… shall be fined not more than $100,000… or imprisoned not more than 5 years, or both, together with the costs of prosecution.”
Even in strictly civil cases, there are substantial penalties for failure to file and, albeit to a lesser extent, failure to pay. The failure-to-file penalty will be imposed if both of the following are true:
- You file the tax return after the applicable deadline. The deadline to file an income tax return is normally April 15. However, the deadline to file a 2017 return – meaning the return you file in 2018 – was April 17.
- You did not obtain a tax filing extension for the pertinent return. To get the extension, taxpayers must file Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) before the filing due date.
The failure-to-file penalty is capped at 5% of the unpaid tax amount, applied toward each month or partial month the return goes unfiled. However, the IRS will not impose a penalty greater than 25% of the unpaid amount.
Needless to say, failing to file a tax return will also prevent the taxpayer from receiving, if he or she is eligible, a tax refund, creating yet another financial loss for the taxpayer. The taxpayer will permanently lose his or her rights to a refund, where applicable, if the tax return is more than three years late.
What to Do if You Have Unfiled Tax Returns or Owe the IRS Money
If you have unfiled tax returns, or consequently owe the IRS delinquent tax debts you know you cannot pay, you may be feeling panicked and lost about where to turn and what to do. The bad news is that, without knowing the details of your situation, it is impossible to determine exactly which actions you should take, as each taxpayer’s legal and financial considerations inevitably differ. To provide a few examples, factors like the following will shape the strategy you should follow:
- How many tax returns you have failed to file.
- How recent the unfiled tax returns are.
- Your reason(s) for failing to file the tax return(s).
- The amount, if anything, that you currently owe the IRS.
- Whether you have already been contacted by the IRS concerning a civil audit or criminal investigation.
- Whether there are other unresolved tax issues, such as undisclosed foreign accounts, that also need addressing.
- If the IRS has filed substitute for returns or California has prepared proposed assessments.
The good news is that, by consulting with a knowledgeable back tax attorney in San Bernardino, you can take the first step toward correcting your tax errors, reentering compliance, and ultimately, getting the peace of mind, you deserve.
San Bernardino, CA Unfiled Tax Returns Attorneys Can Help with Back Taxes
Every year, unfiled tax returns become a source of insomnia and anxiety for millions of Americans. However, there is no need to lose another night of sleep over fears about the IRS. Even if you have several years of unfiled returns to address, or know that you will need assistance creating an affordable plan to pay your IRS and State tax debts, the skilled and efficient San Bernardino back tax lawyers at the Tax Law Offices of David W. Klasing can assess the situation and devise a clear strategy designed to protect your best interests while helping you comply with the law.
If you have unfiled income taxes, unfiled payroll taxes, unfiled employment taxes, unfiled state taxes, or other late returns in need of filing with the IRS or other tax authorities, such as the California Franchise Tax Board (FTB), ask the experienced attorneys at the Tax Law Office of David W. Klasing about how we can help you get started. For a reduced-rate consultation, contact us online, or call our tax firm at (800) 681-1295 today.
See the following helpful Q and A libraries for more information:
Non- Filer Representation:
https://klasing-associates.com/topics/non-filer-assistance-faq/
Employment Taxes:
https://klasing-associates.com/topics/employment-tax-representation-faq/
San Bernardino Tax Law Offices
For any of your tax planning compliance and controversy needs in San Bernardino, 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 909-991-7557 or 800-681-1295 or contact us online today to schedule a reduce rate initial consultation at our San Bernardino tax law offices, or at one of our other convenient locations across Southern California.
