In the United States, ten percent of US citizens fall behind on their taxes. In a quick estimation, almost a million people in the United States have debts in terms of their taxes.
What are Unfiled Taxes?
Unfiled Taxes is a grave offense committed by the taxpayers to the Internal Revenue Services. Failure to file for tax returns would lead to acquiring debt—this will be called back taxes. The longer the period of failing in filing tax returns, is the heavier the pile of fines that a taxpayer would need to adhere. In this case, the Internal Revenue services would require the collection of fines and debts until the taxpayer could complete paying the owed money, and all unfiled tax returns were filed.
What happens when not filing tax returns?
There are consequences that a taxpayer may suffer as long as they do not file their tax returns. One of them is not being able to receive any forms of tax demand that is due. Taxpayers will also be charged a Failure to File penalty—if failing to file a return of taxes and; a Failure to Pay penalty—if failing to pay owed taxes. Similarly, there is an accrued interest in the balance that has been failed to pay by the taxpayer. Lastly, Individuals under the category of Self-Employed citizens will not be able to receive credit for Social Security income reported.
Penalty for Unfiled Taxes
The penalty for unfiled taxes is 5% up to 25% of the unpaid tax. This will work every passing month that the tax is not being filed. If there is Excessive failure in filing taxes, it would start to grow and could reach up to 75% of the owed or unpaid tax. Aside from it, interests will be applied not just on the remaining balance but also on the penalties that the taxpayer acquires.
If a taxpayer has no tax debt but has just failed for its filing, it would be effectively zero in balance. If a taxpayer wants a refund, there is a three-year duration to file the relevant returns to receive it. This is called the Earned Income Tax Credit. If failed to file in the designated duration, the refunds will be automatically forfeited.
File Back Taxes immediately
If a taxpayer has existing unfiled taxes, the best way for it not to get too complicated is by filing the back taxes immediately. The Internal Revenue Service has a keen eye and records the unfiled taxes of every taxpayer. Upon having too many failures, IRS would aggressively collect back tax payments to the taxpayer because of its failure to file.
IRS will generate a substitute return if a taxpayer does not file returns. Through this, substitute return would not include any forms of entitled credits, deductions, or exemptions. Then, the bigger the tax bill, the bigger the chances for an aggressive collection process. IRS highly prioritizes non-filers of taxes in their collection processes. Yet, usually, bigger companies or individuals with bigger unfiled tax returns are what they are first prioritizing. However, smaller profiles are still being processed after.
What are the benefits of filing back taxes immediately? Here are some reasons:
- Immediate filing of taxes will limit interest charges and payment penalties.
- Availability to claim a refund. In order to receive a refund—most especially from withholding and estimated taxes—filing returns is immediately needed.
- Remains benefits from Social Security. When a taxpayer, especially the self-employed, fails to file the return, the greatest risk would be the inability of its income to be reported to the Social Security Administration. What does it mean? The taxpayer is not going to receive credits for retirement or disability from Social Security.
- Failing to file tax returns is giving taxpayers issues in availing of different kinds of loans.
- Actions Taken by IRS if failure for filing.
- A substitute return would be filed without any exemptions, deductions, or credits.
- They will place the taxpayer’s real property under a tax lien or tax levy.
- Garnish wages and bank accounts, including social security and other income sources.
- Seize retirement savings or dividends coming from investments.
- Seize personal properties.
- Send Garnishment notices.
- If a taxpayer has committed willful refusal of filing taxes, tax evasion could be charged to him or her.
Unfiled Taxes Help
There are varying options that a taxpayer could use in order to resolve problems concerning unfiled taxes and other tax-related problems. When deciding what method to use to resolve issues, one must consider these things, including taxation authorities’ errors, taxpayers’ financial standing, etc. Here are some of the methods for unfiled taxes help:
Filing Tax Returns is one of the best ways to help resolve the tax problems of the taxpayers.
If the taxpayer can prove that he (or she) has an acceptable reason for failure to comply with the tax laws, authorities may waive fees that were charged.
Uncollectible or hardship is a method used by which it can help the taxpayer to stop collections of taxes until the improvement of their financial situation. If the taxpayer’s financial situation has not improved by the declared time limitation, the pending balance does not have to be paid anymore.
Another method you may consider is PPIA, wherein it allows the taxpayers to pay the debt on a monthly basis.
Filing Taxes—How to?
Filing a tax return (sales or other forms) is composed of processes including filing the data of taxes and paying the tax money. In the filing process, for example, in the sales tax return, a detailed presentation of every tax data shall be submitted, including total sales, collected tax from sales, and the specific location of every sale that has been made.
Filing of taxes could be made online. Directly accessing the Nevada Department of Taxation web portal is the best and easiest way to file taxes of the taxpayer. Through the web portal, manually entering the transaction data will be needed. This could be done by any individual who wishes to pay their taxes. However, it must be remembered that preparing for a tax return is a time-consuming responsibility, most especially for businessmen who have bigger companies or businesses.
A Company that offers Unfiled Taxes help Las Vegas
Tax resolution services can help taxpayers’ issues in relation to taxes, such as filing tax returns. In resolving unfiled taxes, the company shall first hold an investigation of the taxpayer. These investigations include reviewing the tax transcripts of the taxpayer and its current financial situation. This is being held in order to determine the suitable action to take in resolving the issue.
Coast One Tax Group
Coast One Tax Group is a company that is available to help with tax debt-related issues. This is a firm that provides comprehensive service on tax relief with dedicated CPAs, Tax Attorneys, Enrolled Agents, and Accountants. They handle tax cases not just in Las Vegas but nationwide because they aim to help to reduce tax liabilities as well as resolve tax issues of the taxpayer in need of help. This top-rated relief company helps in assisting tax-related difficulties such as resolving Offer in Compromise, Tax Negotiation, Settlement, Tax Liens, and Levies, Retirement Seizure, Wage Garnishment, IRS tax audit, and unfiled tax returns.