One thing all Americans must do is file tax returns every year. It is important to fill out tax returns so that they are complete and accurate. This applies regardless of how much or how little money the taxpayer has, and regardless of whether the taxpayer is struggling financially.
Taxpayers must file tax returns every year by the deadline. If the taxpayer does not file, the taxpayer can face civil proceedings that will seek the back taxes the taxpayer owes. Not only does the taxpayer have to worry about monetary consequences, the taxpayer may even face criminal charges. The IRS can also assess an additional monetary penalty of up to 25% above the tax liability for the amount the taxpayer owes.
It is never too late to file a tax return. Even if you miss the deadline and fail to file a tax return previously, filing the tax return voluntarily can help eliminate the possibility of being charged with criminal tax crimes like tax fraud or tax evasion. Filing the tax return late shows that although the taxpayer missed the deadline, the taxpayer is not trying to break the law and avoid filing the return. It shows a good faith effort to try to take responsibility to reconcile the taxpayer’s situation with the IRS.
If you are delinquent in filing a tax return, seek a qualified tax attorney. A tax attorney can help assess your options in terms of filing a delinquent return and work to eliminate or reduce any potential penalties. An attorney can do all the necessary communication with the IRS so the taxpayer does not have to worry about what to say to the agency.
An attorney is also useful in helping taxpayers complete tax returns. Because it is so important that tax returns are filled out accurately, an attorney can advise the client how to best make sure this happens to avoid any penalties.
Taxpayers may also complete their own tax returns or use a non legal company to do so. However, the more complex a taxpayer’s financial situation is, the more difficult it may be to accurately complete a tax return. Tax attorneys are trained to know the tax laws and can be a tremendous assistance. Moreover, only tax attorneys can provide the legal advise and help the taxpayer avoid court and criminal penalties.