Fairfax Unfiled Tax Returns Lawyer

Almost everyone who earns money must file an income tax return. The IRS imposes penalties for unfiled returns and interest on unpaid taxes, and these extra charges can add up fast.

If you are concerned about back taxes that you still owe, contact our Fairfax unfiled tax returns lawyer. Our well-regarded tax attorney and former IRS Revenue Officers could use their first-hand knowledge to help you get back into tax compliance and halt the accumulation of penalties and interest. We can recommend and implement a program that allows you to resolve your tax debt with as little hardship as possible.

Reasons for Failing to File

People sometimes do not file tax returns because they are experiencing financial stress and know they cannot pay what they owe on time. Sometimes a taxpayer finds completing the tax return to be too difficult but they cannot afford to pay for professional tax preparation. They try to postpone dealing with the issue by not submitting a tax return.

Unfortunately this results in the IRS imposing a penalty for each month the return is unfiled, in addition to interest and penalties on the unpaid tax. The better strategy is to file without including a payment. The IRS will still impose interest charges and penalties on the unpaid tax, but the taxpayer will not face penalties for failing to file, which is the largest of these 3 items.

The IRS does not automatically assume an attempt to evade taxes when a taxpayer fails to file. Reasons like a death in the immediate family, a serious illness, or the destruction of financial documents in a fire, flood, or natural disaster may excuse a missed filing. However, the IRS may be suspicious when someone who makes $100,000 per year or more does not file for three or more years. These taxpayers should engage an experienced Fairfax tax attorney to help them come into tax compliance with their unfiled or unpaid tax returns.

Ramifications of Failing to File Taxes

When the IRS does not receive a tax return, it may prepare a document called a Substitute for Return (SFR). They use information from your employer, bank, and other sources to prepare the document and calculate the taxes owed. However, the SFR will not include exemptions and deductions you may be entitled to claim and often the tax liability is significantly higher than if you had filed your own tax return.

The IRS will send a Notice of Deficiency detailing how much you owe according to the SFR. You then have 90 days to either pay that amount, file a return, or request a hearing in U.S. Tax Court.

A Fairfax attorney could review your situation and advise on the best response to address your unfiled tax returns. In many cases, submitting a return including exemptions and deductions, and making arrangements to pay the tax owing, is the best option.

Resolving Unpaid Tax Debt

The IRS offers several options to resolve back taxes. When a taxpayer in Fairfax owes the IRS $50,000 or more in back taxes, they should work with an attorney to resolve their delinquency.

An installment agreement is a written contract that allows you to make monthly payments over several years, if necessary. Other options may include an offer in compromise, innocent spouse relief, or requesting currently uncollectable status if you qualify.

When you fail to make arrangements to submit unfiled returns or pay delinquent taxes, the IRS will take enforcement actions. These may include freezing your bank accounts through a tax levy, seizing state and federal tax refunds, garnishing wages, and putting a lien on your home or other real property.

Contact a Fairfax Attorney If You Have Unfiled Tax Returns to Address

Lingering tax issues can be a heavy emotional and financial burden. Find relief by working with the professionals at Pontius Tax Law in Fairfax to resolve your unfiled tax returns. We have the knowledge and experience to solve your tax problems, so contact us today and learn what options you have.