What to do if you have missed filing your earlier tax returns

There may be many reasons for a taxpayer to miss filing their tax returns. Some of these may be, not having enough money for paying taxes, forgetting to file the tax return, not having enough time or knowledge to file the return, or misinterpreting the tax laws and regulations. All of these are entirely possible and result in a taxpayer missing the filing. This may however turn out to be a costly turn of events, once the IRS gets involved and audits your books. The taxpayers need to understand that the IRS naturally considers all the unpaid taxes as an attempted tax theft from the government. The taxpayers are required to pay back the entire tax amount that is due to date which is referred to as the back taxes. Apart from back taxes, the IRS also imposes several fines and penalties that inflate the final amount. This becomes a big problem for any regular taxpayer since the Tax Debt amount that is demanded by the IRS is much bigger than the current income of the person.

The IRS may also place a Tax Lien on the properties owned by the taxpayer which may further complicate their financial situation. A property that has a Tax Lien placed on it, can’t be sold since the IRS will notify all the parties interested in buying your property as well as money lending institutes to be aware that there is an outstanding Federal Tax Lien on your property. Further, your credit score might also get negatively affected any the effects may last far longer even if you have paid back the tax debt. This may result in higher interest rates or the inability to get a loan issued. The IRS may also move with more stringent actions such as Tax Levy which allows IRS to go to court against you and seize your property, or Wage Garnishment where the IRS notifies your employer of your Tax Debt and take a part of your monthly income. 

To avoid these unpleasant situations you can contact a Tax Attorney or Certified Public Accountant (CPA) and file your back taxes at the earliest. Once you have got in touch with the Tax Lawyer, they should be able to calculate the amount that you owe according to the tax laws of the area you are residing in. They can also determine if you qualify for a tax refund on the tax returns that you have filed in the past. If you have already been sent the demand note and some actions such as tax levy, tax lien, wage garnishment or bank account levy have already been initiated for you, the Tax Attorney can help you resolve these. If you do not have the means of paying the entire tax debt, your tax attorney can send an Odder in Compromise, which is used to agree with IRS on a discounted tax debt amount that you can repay. They can also execute an installment agreement with IRS so that you can pay back the amount in small installments. Depending on your situation the tax attorney can also negotiate with IRS to relieve you from the penalties that have been charged. If you are facing a situation with the IRS already, it is highly recommended to get in touch with a tax attorney such as National Tax Attorney which can make your tax debt nightmare go away with ease.