It has been established that many tax payers are behind with tax returns. In fact, many are from four to eleven years behind. This means there are many Americans under a great deal of stress to get on top of their tax deposits. This is a situation that has been around for many years. Now, there is also a weak economy causing unemployment and all the added financial burdens that go with it. This means there are growing numbers of tax payers who can’t pay their taxes by 15 April.
Regardless of how burdened you may feel it is advisable to remain in contact with the IRS rather than avoid them. Your situation may be bleak right now but you are entitled to specific rights and with a little tax knowledge you can improve your position with the IRS.
The starting point is to know you have the right legal help if necessary. If you don’t file a tax return then the IRS will resort to filing a proxy for return. If they do then it is highly likely they will overstate the amount you owe in taxes. An overstatement will result in interest and also penalties. The best way to avoid this situation is to file your own returns and give them the correct amount you owe.
Another consequence of not filing is the 143 penalties used by the IRS. If for any reason you have experienced events that are life changing. Events that may be accepted by the IRS as valid are loss of employment, divorce, chronic illness and closure of a business. If such situations are the cause of you not filing a tax return the IRS will assist you and also overlook appropriate penalties.
Should you receive an IRS letter of notification don’t turn a blind eye because they will not forget. It is possible to strike a deal with them so that you are able to catch up and pay your legal taxes, and achieve tax relief.
