Forgot to File Taxes? Don’t Wait for the IRS to Contact You

December 15, 2022

Tax mistakes can happen, and they are becoming more and more common because people are struggling with the cost of living and the changing market environment. If you forgot to file taxes, it’s better to act now than to wait for the IRS to take notice, since you might be able to avoid fines and penalties that way. Reach out to a Louisiana tax resolution specialist and explain your situation.

The advisor can help you figure out how much you owe, and they can file the paperwork for you. If you believe you’ll have trouble paying back taxes, let them know, and they’ll go through your options with you. The IRS forgiveness program can help you to either delay, spread out, or reduce your payments so they become more manageable.

Forgot to File Taxes? Don’t Wait for the IRS to Contact You

People who owe the IRS and haven’t filed their return on time will receive a summons via mail. If you fail to respond to this, the government will start adding fines and penalties to your account. Eventually, they might enforce tax liens, so you could lose your savings, a part of your income, or even your property such as your house or your car. Depending on the amount you owe, you might even have to go to jail.

Because the consequences of not filing your return and paying your taxes are so severe, it’s best to reach out to a tax resolution specialist and resolve your situation as soon as possible. It’s likely that you can avoid most of the above-named problems if you react early enough instead of waiting until you hear from the IRS.

What Happens If You Don’t File Taxes?

The most common problem people who don’t file their taxes encounter is a “failure to file” penalty. Every month you don’t file, the IRS will add 5% to your outstanding balance, up to a total of 25%. You’ll also need to pay interest, which is calculated daily. As you can see, these fines can quickly add up, especially if you’re in one of the higher tax brackets.
 

Should I File My Taxes If I Don’t Have the Money to Pay?

Even if you don’t have the money to pay your taxes right now, it’s always a good idea to file on time. This is because the penalty for paying late is much smaller than the above-named “failure to file” penalty. If you submit your return but you don’t pay, the IRS will add 0.5% to your account every month, plus interest. This means that your debt will grow much slower.

What If I Am Audited?

Although anyone can get audited, people who have made a mistake, such as filing late, paying late, not declaring all their income, or overstating their expenses are much more likely to get noticed. If you’ve received a letter from the IRS that you are being audited, contact a Louisiana tax resolution specialist as soon as you can.

There are several kinds of audits. While a mail audit is pretty standard and nothing to worry about, a field or office audit is more complex because it involves in-person interactions with IRS officials. Your business activity, assets, and lifestyle will be analyzed, and you might have to submit a lot of paperwork. A good tax resolution expert will help negotiate with the IRS on your behalf and make sure your documents are in order.

Do I Need to File Taxes If I Don’t Owe Anything?

Most people who earn an income need to file their taxes, but there are some exceptions. Those who earned less than the standard deduction for their filing status and don’t have any extra income, for example from self-employment, might not have to file. Citizens over 65 could also be exempt. If you fall into one of these groups, you don’t necessarily have to worry about taxes.

However, it could still be worth contacting a tax resolution specialist because they can make sure you haven’t missed anything, and they can check whether you’re owed money by the IRS. Remember, refunds aren’t issued automatically, so if you don’t file a return within three years, you might not be able to claim back any tax you paid throughout the year.

How Can a Louisiana Tax Resolution Specialist Help?

Many people and even some small businesses file their taxes on their own. While this is not a problem under normal circumstances, you’ll almost certainly need help if you forgot to file taxes because you might be facing penalties or worse. A tax advisor can file your return for you to prevent further fines and IRS action, help you access the forgiveness program if you’re having trouble paying, and they might even get some of the penalties removed.

Filing Your Taxes for You

Your advisor’s first job will be to file your taxes for you. They will help you collect all the relevant information and fill out the forms correctly to reduce the likelihood of further issues. They might also speak to you about the reason why you failed to file and how you could avoid similar problems in the future.

Helping You Access the Forgiveness Program 

The IRS forgiveness program is a series of solutions designed for people who are having trouble paying their taxes. Once your specialist has filed your return and you’ve figured out how much you owe, you can determine which option is suitable for you. This is important because signing up with one of the programs stops any collection activity. Most people are eligible for an Installment Agreement, which allows them to spread out the payments.

You might not have to pay at all if doing so would cause financial hardship or if you can prove that your spouse was at fault. The most desirable forgiveness option is the Offer in Compromise. This involves making the IRS a lower offer, so you don’t have to pay the full amount. Because most offers get declined, it’s important to speak to your tax advisor before submitting one.

Getting Your Penalties Removed 

The penalties for not filing and paying on time can add up to a significant sum. As mentioned, you might have to pay 25% extra, plus the interest that is added to your account every day. In some cases, this amounts to thousands or even tens of thousands of dollars. Fortunately, there are several methods of getting the penalties removed from your account.

If you’ve never had a problem with the IRS before, you can call them and ask to have the extra charges dropped. You can also let them know if you were struggling with a difficult situation, such as the death of a close relative or a serious illness. The tax advisor can help you negotiate with the IRS and prove that you had a valid reason why you didn’t file and pay on time.

Millions of people and businesses are having trouble paying their tax bill at the moment. If you forgot to file taxes or you’re not sure how you’re going to pay, speak to an experienced Louisiana tax resolution professional. They can help you submit your paperwork and check whether you’re eligible for any relief or penalty reduction. Contact us at Geaux Tax Resolution and book an appointment with an advisor to find out more.