Have you been behind on filing taxes with the Internal Revenue Service? If you have been, something you’ll want to do is to file your delinquent tax return. If you don’t file your tax return on time, it is true that the IRS could charge you a fee, which is something you may want to talk about with your attorney, especially if you owed money.
Each time you fail to file a tax return, the IRS will charge you 5% per month as a penalty. That adds up over time, especially when you consider the additional .5% failure-to-pay penalty that the Internal Revenue Service will charge. Interest also builds up, so what was once a manageable payment may no longer be one that you’re capable of paying once you file and get ready to cover your debt.
I Waited Several Years to File a Tax Return, and Now I Owe Thousands. What Should I Do?
There are a few things that could happen. First off, if you talk to the IRS, you may be able to settle the debt for less than what you owe. You may also be able to get started on a payment plan, which would allow you to pay down what you owe over time.
This situation can get complex, and you may be overwhelmed by what you’re told you owe. Your attorney will walk you through the steps for negotiating with the IRS and help you reduce what you owe, so you can settle your IRS tax debt. This is one time when you don’t want to go in without knowing the law or your rights.