E-ArticleSite | Unfiled IRS Tax Returns

There are many reasons that people provide for not filing tax returns when they're due. There might have been an unexpected disaster, worry of filing due to lack of funds required, or perhaps simply the taxpayer didn't understand how. Whatever the reason, it is crucial to understand that the IRS or State taxing authority is virtually always going to find out. Penalties and interest is going to be imposed if you don't handle the problem.

Recently 20/20 Tax Resolution analyzed client trends through information provided in the new client interview procedure. Below are the top reasons for not filing according to the 20/20 Tax Resolution client analysis (in no particular order):

- Disaster
- Absentmindedness
- Error of Accountant or Bookkeeper
- Ignorance - don't understand how / or didn't know when
- Did not file on account of lack of money to pay taxes
- Didn't pay tax accountant therefore returns weren't done

So what should you do if you are one of these taxpayers with unfiled returns? One worry, for those that haven't filed returns in a while, may be the concern about how bad things will be once the taxing authorities find out. The severity of the taxing authorities’ actions is dependent on many factors.

Initially, they will establish how many returns are missing and if there were balances owing. The most important thing you are able to do is file your returns as soon as possible. You are charged penalties for each day the returns are late. Two things can happen once the returns are filed.

(1) entire amount|If no money was owing, you'll still be billed for penalties and interest. You will need to pay this sum}. You should get and Installment Agreement or alternate repayment arrangement if you cannot pay the amount in full.

(2) Otherwise you'll be given a bill for whatever money is outstanding on any or all of the returns. The taxing authorities may file a tax lien and instigate the process of enforced collection efforts if you do not make immediate payment.

Enforced collection comes in several types and depends on many diverse criteria. The taxing authorities will examine the total balance owing, length of period you haven't been in compliance, whether or not you are filing and paying your taxes currently, and the reason you did not file, along with various further factors.

Once the tax lien is filed, the IRS has protected their interest in your assets. They might take some of these actions to collect on the debt (not all-inclusive list):

- Levy bank accounts, accounts receivable or both
- Garnish wages or Social Security
- Seize property or force you to sell assets that can pay down your liability
- Lock up your business and seize its assets.

There are some ways you can get control of your tax problem. Paying the debt in full is obviously one of the best method. Paying in one lump sum is, nonetheless, more than most taxpayers can manage. If manageable, paying is two or three installments may be desirable. If short-term arrangements might be made, the taxing authorities may not demand you to fill out financial forms or provide verification of expenses and income. If a longer-term Installment Agreement or Offer in Compromise is considered, then a thorough financial analysis, income and expense verifications, and the filing of missing returns are necessary by the tax authorities before a taxpayer can qualify for a resolution.

In the event you can't gain control of matters and the taxing authority is threatening to take enforced collection or already has, you likely require guidance from a tax professional that's well versed in taxing authority collection issues. Tax debt negotiation companies like 20/20 Tax Resolution are well-informed of all tax resolution approaches and trained specially in tax law. For this reason, they are a lot more effective than an attorney or accountant that does not have this specialization or expertise. 20/20 Tax Resolution can work to stop all looming collection efforts and clear a path for negotiation of the liability. 20/20 Tax Resolution will negotiate all settlement provisions and work toward the most desirable outcome.

Appointing a expert will provide you piece of mind and let you to go on with life while the negotiations are ongoing.