Challenges in Filing Taxes to the IRS

Most Americans will need to file their taxes every spring and the majority of them should be able to do so without much trouble. For certain businesses or individuals with significant assets or extra forms to fill out, this can be a complicated and lengthy process. It may require you to get assistance from an experienced tax lawyer so that you follow all the laws, or you may need legal assistance if you have fallen out of compliance and want to carefully make corrections.

If you estimate you will owe the IRS over $50,000 based upon unfiled tax returns, ask Pontius Tax Law for more information.

What is the IRS Deadline to File Taxes?

The IRS deadline to file taxes is April 15th of each year. Additionally, taxpayers can file extensions for an additional six months, to October 15th. Business partnerships and corporations are generally due on March 15th each year, but they can request a six-month extension. Those extensions only apply to the filing of the tax return – the actual payments are still due on April 15th and March 15th, respectively.

If you do not file your taxes on time, the IRS has the power to implement penalties and interest, which will continue to accrue until the return is filed, and the tax debt is paid or resolved in another way. Certain taxpayers may also have the option to file their tax returns before the due date.

Most Common IRS Challenges for Taxpayers

One of the most common challenges that taxpayers face is not being able to afford to pay their taxes, causing them to simply stop filing and go out of compliance. That is more common for people who are self-employed who do not have taxes withheld from their wages, which means they must make estimated tax payments. Most taxpayers usually have good intentions, but if they experienced a slower business year, they may feel the need to forego tax payments in order to take care of other life expenses.

A tax attorney can help an individual or business experiencing a tax controversy by getting them back into compliance. We can accomplish this through filing unfiled tax returns, and settling any tax debts through procedures such as offer in compromise or an installment agreement. If necessary, we could also represent taxpayers who are being audited by the IRS or appealing a decision, which may involve challenging the underlying assessment or the amount of tax due.

Minimizing Risk When Filing Taxes

One of the benefits of working with Pontius Tax Law is getting an analysis of your level of risk if you have been non-compliant with the IRS. A tax attorney could help you analyze risk and resolve disputes by getting involved early with the tax issue – ideally before you have even been contacted by the IRS.

The best way to minimize tax risk is as simple as reporting all income properly and not overstating any deductions or credits. You should maintain good records and keep copies of your tax returns, the underlying books, records, and other substantiation documents for a period of at least seven years. If you hire us to manage your issue, these documents will be extremely helpful in understanding the situation and finding the best resolution.

Contact Pontius Tax Law to set up a consultation.