There are a number of problems come from not filing your taxes. Below we outline a few of them.
1) Red Flags
Don’t file your taxes and an automatic red flag pops up on your file. You are now on the IRS watch list. Let’s be serious…Do you really want the IRS to pay more attention to you than they already are?
2) Debt Increases
When you don’t file your tax debt increases with additional accumulating penalties and interest. We want to get rid of tax debt, not contribute to it.
Submitting an accurate return on time keeps the IRS from ever filing an SFR (Substitute for Return), in other words filing a return for you. When the IRS files a return for you…it is never pleasant! Filing on time also helps keeps penalties to a minimum.
3) Lose Negotiating Power
If you miss filing, either the April or October deadlines, you lose the ability to negotiate with the IRS until you come current with your IRS income tax filings. If you want to talk with the IRS about your situation and resolve your growing tax issues you must have all your tax returns filed. This is why we constantly try to get clients to submit their complete financial information as quickly as possible. We must get you compliant (up to date with your filings) before a solution can be negotiated.
4) Default on Existing I/A
If you are currently in an Installment agreement, not filing will default your installment agreement.
5) Default on Offer
If you have an offer approved or pending, not filing or not paying your taxes owed for 5 years will automatically default your offer and you will owe your entire balance again.
Call Millennia if you are having problems with IRS tax debt. We are here to help individuals and companies deal with their IRS and state tax issues.