If you have unfiled tax returns, the IRS can and will come after you, turning your world upside down. Trust me, you don’t want to mess with the IRS. My name is Daniel Cotts, a licensed tax attorney, and I help people in all 50 states get the IRS off their backs.
The Stress of Unfiled Tax Returns
When the IRS is coming after you, it’s stressful and time-consuming. Most people have no idea what to do next. As you navigate through the maze of unfiled tax returns, it’s crucial to understand how to deal with the IRS. Dealing with unfiled tax returns sets in motion a series of events that can snowball into significant tax troubles.
Penalties and Interest
Unfiled tax returns accrue penalties and interest, significantly increasing the amount due. The longer you wait, the more expensive it gets. They won’t give you a discount later. Unfiled tax returns are one of the IRS’s biggest peeves. They want to know what’s happening, even if you don’t have much to report.
- Failure to File Penalty: This is 5% per month, up to 25% of the amount due. You’ve added 25% to your tax bill in just five months.
- Failure to Pay Penalty: This is 0.5% per month, up to 25%. If you don’t pay, you could see a 50% increase in your tax debt.
- Interest: Interest is charged on the unpaid tax debt and penalties. Worse, they charge interest on the interest. Ignoring your tax debt only makes it grow larger.
Financial and Personal Consequences
Unfiled tax returns can severely impact your financial and personal life. If you’re in the market to buy a home or get a loan, unfiled tax returns will shoot that dream down. In worst-case scenarios, your accounts can be levied, assets seized, and future wealth eliminated.
It’s also embarrassing and can cast a shadow on your reputation. If you’re licensed in almost any profession, your state licensing board can take action against you. Federal employees with security clearance risk having their clearance revoked.
Taking Action
So, what do you do if you still need to file tax returns? You find representation with someone like us, who knows the tax code inside and out. Since we have been doing this, I am still waiting to see someone take on and beat the IRS by themselves without representation. Dealing with the IRS is like watching paint dry; you need to understand thousands of pages of tax code, cases, and regulations. You have to know how to talk to them in their language. No one likes talking to the IRS.
The Bottom Line
If you have unfiled tax returns, you need to settle them immediately. Doing so will save you hundreds of dollars in the long term. Trying to get penalties, fees, and interest removed by the IRS takes a lot of work. If you have more questions, contact Cotts Law or check out the rest of my YouTube content. I make videos informing the public about tax law and dealing with the IRS.
Tax lawyer tips: Always file your tax returns on time to avoid penalties and interest. Seek help from a qualified tax lawyer if you have unfiled tax returns to navigate the complexities of the IRS and protect your assets.
Conclusion
Unfiled tax returns can cause significant financial and personal distress. Penalties, interest, and severe consequences from the IRS can disrupt your life. However, with the proper representation from a tax attorney, you can navigate this maze and minimize the damage. Contact Cot\ts Law today to start building your defense against the IRS. Don’t let unfiled tax returns 2024 ruin your future—act now and regain control of your finances and peace of mind.
