I can't pay my taxes. Why file?
The IRS views the failure to file a tax return as a criminal act which begins as a misdemeanor and can elevate to a felony. However, the failure to pay the IRS is only a civil manner. Always file a return even if you cannot pay. You cannot qualify for any tax relief help if you have not filed your tax return(s). Additionally, there are financial penalties for not filing your tax return which can be avoided if you file your return timely.
Is it possible to get an extension and not have to pay interest and fines?
Not usually. The IRS may extend your file date for six months, but they still require full payment by April 15th to avoid penalties and interest. Occasionally, penalties may stop accruing, but compounding interest continues.
I didn't get my refund. Why not?
Your refund may have been applied to a delinquent tax debt from previous IRS back taxes owed. It can also be used to pay various delinquent government loans, overdue child support, or Social Security overpayment.
Will the IRS actually come to my house or place of business?
Yes. If you have not responded to IRS Notices or phone calls, your case may be assigned to a local IRS Revenue Officer to locate you.
Does the IRS have the right to take my home and assets?
Yes. The IRS has the authority to seize and sell your home, car, etc. to pay delinquent tax debts from IRS back taxes still owed.
Will I get any warning before the IRS freezes my bank accounts or seizes my assets?
Yes. The IRS must notify the taxpayer prior to levy or seizure. Notices must be sent certified mail to your last known address. However, many delinquent taxpayers move frequently and do not receive these notices.
Can I be sent to jail for not filing tax returns?
It is possible, but not likely. The IRS considers the act of not filing tax returns as being non-compliant with tax laws. Tax fraud or tax evasion charges are usually brought against individuals in organized crime or public figures.
Is the IRS ever willing to deal with you?
Yes, the IRS offers many tax relief options for settling back taxes. We are well versed in all tax relief options and will guide you through the process.
What's the difference between a levy and a lien?
An IRS levy is the legal seizure of your property to satisfy a tax liability. An IRS lien is used as security for a tax debt and is listed on your credit history and will prevent you from selling or refinancing your home.
I only owe payroll taxes. Can the IRS go after my personal assets?
Yes. The IRS can assess the Trust Fund Recovery Penalty even if the business is defunct. The penalty for willful failure to pay withheld income and employment taxes can be assessed against the individual(s) responsible for collecting and paying these taxes.
Will ignoring the IRS notices make them give up?
Rarely does the IRS "give up". Ignoring the IRS will lead to more forceful collection action such as a Revenue Officer coming to your home or place business, bank account levy, wage garnishment, or seizure of property. Responding to the IRS as soon as possible will help avoid a hostile environment.