What happens if you did not file income tax returns.

WHAT HAPPENS IF YOU DID NOT FILE INCOME TAX RETURNS




Every year, more and more US citizens fail to comply with their tax obligations like filing income tax returns and face IRS back taxes or a more serious problem with IRS. If you are dealing with IRS problems right now, you should take the next step towards resolving it before it escalates into another difficult level and seek an advice from a tax expert like a tax attorney. Non filing can cause several things that you wouldn’t want to yourself into especially matters that will threaten your life or the life of your family.




If IRS starts sending you notice demanding for payment, you should be able to respond and settle your taxes right away. If you do not have the money to pay it yet you can always ask for a 30-60 days extension and prepare the amount you should remit to IRS. It is okay to receive these notices as long as you take necessary action to be able to settle it within the period of time as you promised.




What really happens if you fail to file an income tax return? Here are some of the scenarios you will face most likely face:

1. IRS will start contacting you. They will send you written request for payments, if you ignore them another notice with a deadline will follow within 30 days. Telephone calls and unexpected visits by IRS agents will happen if you didn’t even try to respond to the IRS and make payments as requested from you. Finally, you will get in trouble if the CID (Criminal investigation Department) will come and knock on your door. The level of notifications will tell how bad your IRS problem is. If it reaches the part that you are dealing with CID, you should get a tax attorney to help you settle everything.
2. IRS will file income tax returns for you. This may sound convenient but it’s the other way around. If IRS will prepare and file your income tax returns through SFR (Substitute File Return), they will not apply your exemptions, you will not have dependents and may result on a higher tax bill. After it has been filed, IRS will send you a copy and you have to sign it and mail it back to them. Whether or not you sign the SFR, IRS will finalize the SFR and any taxes due with interest and penalties will be assessed against you.
3. You will be charged high interest rates and penalties. These 2 are things that you can’t stop if you do not file income tax returns on time. The more you delay filing, the more interest and penalties you will be paying.
4. You will be criminally prosecuted. This scenario is very rare but can really happen if you continue neglecting your tax obligations. Felony is a very serious crime that carries a punishment of 5 years imprisonment and a penalty of $100,000. However, this criminal prosecution has to involve any deceitful act such as using a false SSN.

If you have a tax attorney by your side, relief is not difficult to obtain. They can give you instant relief from the hassle of filing and can provide you with tax advice on how to secure your finances in the future against risks and criminal prosecution. If you are looking for the best tax attorneys and lawyers, Instant Tax Solutions have the most experienced and trusted ones that can provide you with a cost effective IRS tax relief help. Call ITS now and find out how to resolve your tax problems today.