Melbourne Unfiled Tax Returns Attorney

Melbourne Unfiled Tax Returns Lawyer

Taxpayers know that they are responsible for filing their tax returns on time and in full. When taxpayers do not meet this obligation, there can be consequences. Many unexpected life emergencies and complex circumstances can prevent someone from filing their tax returns on time, but it is crucial that taxpayers address tax returns quickly. A Melbourne unfiled tax returns attorney can help you if you have unfiled tax returns. Unfiled taxes can lead to bigger state tax problems. A compassionate Melbourne state tax lawyer can help you fix tax issues before they get worse.

The worst thing a taxpayer can do is ignore unfiled returns and tax debt. Failing to file leads to penalties, both with the state agency and the IRS (Internal Revenue Service). These penalties add to the unpaid tax debt, and this sum also gathers interest. Ignoring the issue only increases the debt, may leave you with fewer options, and can result in more severe collection actions by tax agencies.

Addressing Unfiled Tax Returns With Tax Smith Tax Attorneys in Melbourne

There are potential options for settling your tax debt from unfiled tax returns or minimizing its immediate financial consequences on your life. It can be exceptionally stressful to deal with unfiled tax returns and the accrued tax debt, but you don’t have to navigate this process alone. At Tax Smith Tax Attorneys, our team has decades of collective legal experience. We have helped individual and business owner taxpayers navigate their tax returns and unpaid tax debt.

There may be several options for resolving your tax debt or giving you more time to pay back the value of your tax debt. Tax agencies are often willing to work with taxpayers. Our firm can help you review your options based on the debt you owe and your financial situation. We can help you file the tax returns and negotiate with the IRS. Our goal is to provide you with reliable and understandable legal support, helping this stressful situation become less overwhelming.

What Are the Consequences of Not Filing Federal Tax Returns?

It is important to address unpaid taxes quickly. Outstanding tax debt can impact you in several ways, from financial penalties to criminal charges. In addition to assigning penalties and interest to the tax debt, there are collection actions that the IRS can take to recover the debt you owe. This includes:

• Wage garnishment. The IRS can garnish your wages by requiring your employer to send a portion of your wages directly to the agency. This garnishment may continue until the tax debt is paid off in full, in addition to other collection actions. In addition to wages, the IRS can garnish bonuses, commissions, and other forms of income. The IRS can also garnish federal benefits and accounts receivables.
• Liens on assets. The IRS can put a lien on your property, accounts, and other assets. This puts a claim on the asset, using it as collateral for the debt. The asset could be seized if the debt is unpaid, which means you can’t sell the asset. The lien is viewable by creditors, banks, and financial institutions. You may be unable to receive credit until the lien is resolved.
• Bank levies. The IRS can levy your bank accounts, which means they remove the amount of your debt from your bank account. The agency can levy funds from as many bank accounts as needed to cover the debt. Prior to removing the funds from your account, there may be a freeze put on the affected accounts. This can prevent you from making any payments for that period of time, causing severe financial limitations.

Negotiating your tax debt can limit or avoid these collection actions. If you negotiate a payment plan, for example, other collection actions may cease.

If your debt continues to grow, the IRS may assign a collection or revenue officer to your case to recover your tax debt. In the most severe situation, you may be charged with tax evasion for failing to pay your taxes, such as if the IRS believes you are intentionally refusing to pay your taxes. These criminal charges can be very serious. It is important to act prior to this happening.

FAQs About Melbourne,FL Unfiled Tax Returns Law

What Do I Do If I Have Years of Unfiled Tax Returns?

If you have years of unfiled tax returns, you need to file those returns as quickly as possible. You should talk with a tax attorney about your situation, particularly if you are dealing with collection actions like wage garnishment or levies. An attorney can determine how to address those collection actions or prevent them before they happen. If you are unable to pay for the entire tax return debt, your attorney can help review your payment options.

How Do I Settle Unfiled Taxes?

There are options for settling unfiled taxes if you can’t pay the full amount, such as a payment plan with state or federal tax agencies or a settlement through an offer in compromise. An attorney can review your financial situation and your tax debt to determine what you may qualify for. If you can secure a settlement or payment plan, it can resolve your tax debt or give you time to pay back the debt without fear of collection actions. If you have years of unfiled tax returns, you need to file those returns as quickly as possible. Delaying further can lead to additional penalties and interest.

Do You Need a Tax Attorney to File Back Taxes?

A tax attorney can be helpful when filing back taxes, especially if you don’t have the financial ability to meet the payments on your back taxes. An attorney can negotiate other payment options if this is the case. Your attorney can deal with a tax agency for you and could prevent collection actions that further affect your financial stability. Even if you are simply filing all taxes and paying back the debt, an attorney can simplify this overwhelming process.

What Is the Penalty for Unfiled Tax Returns?

Penalties for unfiled tax returns depend on how much you have not paid, the amount of time you have continued not to pay, and whether you are actively negotiating the debt with the tax agency. Common penalties include the failure to file or failure to pay penalties. The failure to file penalty with the IRS is typically a percentage of the tax debt you owe for each month you fail to file. This may continue to accrue, along with interest.

Experienced Unfiled Tax Return Attorneys in Melbourne

You need to act as soon as possible if you have unfiled tax returns. At Tax Smith Tax Attorneys, we can help you address your tax debt and potentially settle it for less. Contact our firm today.