The consequences of not filing a tax return will have a snow balling effect on your Social Security Number (SSN) or Employer Identification Number (EIN). The longer it takes to file or address the tax problem, the larger the tax problem becomes because of time.
FYI, the penalty for not paying the tax liability reported on the tax return filed on time, is less than the series of penalties for not filing a tax return at all.
Dial 1 - 8 6 6 - 2 2 6 - 6 1 0 2 for No Non-Sense Tax Attorney representation.
Below are some penalties the IRS will charge for unfiled and unpaid taxes:
"Failure to File" Penalty – The harshest penalty the IRS will charge for the taxpayer who owes taxes and did not file. The penalty is 5% of the total balance for each month that has passed since due. This penalty can be up to 25% of the total balance.
"Accrued Interest" Penalty – Accrued 4% annual interest on unpaid balances. Interest is updated on a quarterly basis, so depending on when you are reading this it may be a bit more or a bit less than 4%.
"Failure to Pay" Penalty – This penalty is 0.5% of the total balance for each month that has passed since the balance was due.
Other scenarios that could come into play regarding unfiled taxes...
Lost Money - The Taxpayer could miss out on a refund due if not claimed within 3 years of the year due not including extensions.
Substitute Filed Returns (SFR) - The IRS can and will prepare tax returns for you, sounds cool right? However, "ZERO" deductions and limited exemptions are applied. What does this mean? Higher Tax Bill and the taxpayer has no say what so ever unless the SFR is replaced. Sometimes a good thing to replace sometimes not pending the Collection Statute Expiration Date (CSED).
As illustrated above, the general consensus is to file those taxes, whether you can pay or not. Best to be proactive, make conscious change to address the "Core" of the tax problem and move forward. DWK Tax Group will put you in the best possible scenario allowed by the taxing authority. Remember...having a Tax Attorney in your corner is the most rock solid representation you can ask for...
Visit us today @ DWK Tax Group’s Website: http://dwktaxgroup.com/
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http://dwktaxgroup.com: Your Nationwide Internet Tax Resolution Company provides all 50 States, including Hawaii and Alaska, with IRS Tax Relief representation. We WILL Stop Your IRS Wage Garnishment / IRS Levy within 1 to 2 Business Days.