Penalties If You Fail to File Tax Returns
If you fail to file a tax return, fall behind in doing so, or fail to pay your taxes on time, the IRS will assess penalties and interest. The longer you wait to pay your taxes, the higher the interest you have to pay.
If you do not pay taxes, the IRS can seize the assets which you currently own, including bank accounts and real estate. If the IRS does not seize your real estate immediately, it may file a lien against it, making it nearly impossible to sell your property to a third party. If you receive income from wages, pension, or Social Security, the IRS can garnish that income until your tax debt is repaid.
Get ready to face criminal penalties
In addition to penalties and increasing interest rates, you could also face criminal penalties if you are having trouble with the IRS. The IRS can periodically file for criminal charges against an offending citizen in order to maintain a threat, and for many people that alone is intimidating enough. Criminal charges can result in one year of imprisonment in federal prison, a fine of up to 100,000 dollars -- or both -- for every tax return you fail to file.
However, tax attorneys can negotiate on your behalf with the IRS in providing tax relief, reducing the amount of tax, and avoiding criminal penalties.
Tax lawyers can help
If you live in the Pennsylvania area and face tax problems, do not hesitate to get in touch with an attorney who can guide you in understanding tax laws and help to put your tax problems behind you.
Information in this post gathered in association with a Reno bankruptcy attorney
Finding the Best Solution to Your Tax Problem
When you fail to file a tax return, file a late return, or fail to pay your taxes on time, the Internal Revenue Service (IRS) assesses penalties and interest. And failing to resolve these tax liabilities may hurt your credit and lead to seizing assets you currently own, including bank accounts and real estate. Also, most tax liabilities cannot be discharged in bankruptcy. Only a tax law attorney can help you negotiate with the IRS to provide tax relief.
In most cases, the solution to your tax problem may be simple. Contacting a tax law firm in Pennsylvania can help you resolve your tax issue with one of the following resolutions:
- Installment Agreement: The IRS allows you pay your tax liability in accordance with an installment agreement. An experienced tax law attorney can guide you through different installment plans.
- Offer in Compromise: An offer in compromise is the best solution if you cannot afford to make installment payments. An offer in compromise is an agreement with the IRS that reduces what you owe to an amount you can afford.
- Penalty Abatement: An abatement is possible only if you can show reasonable cause for your hardships. In these cases, the IRS may reduce or occasionally remove the assessed penalties against you.
If you have any tax-related issue, do not hesitate to get in touch with an experienced tax attorney who can help you get on the path to tax compliance.
What Is Nonprofit Law?
Nonprofit organizations are generally exempt from taxation, and they include include any group established for charitable purpose. Some examples of nonprofit organizations include:
- Educational institutions
- Civic and community groups
- Youth sports leagues
- Religious institutions and organizations
- Veteran and fraternal groups
- Medical research groups
- Art and cultural organizations.
To qualify for tax exemption, the organization must specify that the members of the organization do not benefit from its assets. In addition, the organization must be involved in educational, religious, or charitable activities.
An experienced nonprofit attorney in Minneapolis helps nonprofit organizations with these types of legal issues:
- Entity formation
- Charitable fund-raising
- 501(c) tax-exempt status
- Gaming and bingo licenses
- Fiduciary duties
- Professional solicitation
- Complex transactions and best practices
Also, most of the nonprofit organizations are subject to greater scrutiny by the IRS. A nonprofit attorney understands these tax laws and provides clients with comprehensive legal support.
Michigan Tax Filing Tips
When you go to file your taxes, there are a few areas which you may either be confused about or not entirely confident on what to put in to maximize your tax return. Luckily, there are tax professionals which you can contact for help or any questions you may have about filing your taxes in Michigan. These legal experts will have the experience necessary to guide you through the tax filing process so that you file efficiently and have the best chance at maximizing your return.
Michigan tax lawyers at the law firm of Bendure & Thomas have compiled a short list of tips and things to remember when you're about to file your taxes. It is a good idea to review this list so that you don't miss anything when preparing your tax returns:
Here are a few of the most "popular" tax return filing errors:
Did you enter the proper amount as Federal Income Tax Withheld?
Form W-2 shows both federal income tax and FICA (Social Security tax) withheld from your paychecks, and if you use the wrong information, your refund or tax owed calculation is incorrect.
If you or your spouse are age 65 or older or blind:
You must check all appropriate boxes in order to get the additional tax benefits.
If you did not have enough deductions to itemize:
Make sure you used the correct standard deduction chart to find the right amount.
Are you entitled to an Earned Income Credit?
Taxpayers who have earned income below a certain level may be able to get this refundable credit. A tax credit is a dollar-for-dollar reduction of taxes owed, and, with a refundable credit, your taxes could be reduced to the point that you would receive a refund rather than owe any taxes.
Did you enter the correct amount of tax owed?
In order to properly calculate your tax liability for the year, you have to find the line on your return that shows taxable income. In the tax table, find the line that includes your taxable income, then find the column for your particular filing status (married filing jointly, single, head of household, etc.). The amount shown on the line where your taxable income meets your filing status is your tax for the year.
Have you attached all necessary forms and schedules?
You must include Copy B of all your W-2's.
Did you (and your spouse, if filing jointly) sign and date the return?
If not, it will be bounced back to you.
Include a check made payable to the "Internal Revenue Service" for any amount due:
And print your social security number, phone number, tax form number, and tax year on your check.
Make copies for your own records.
Use proper mailing procedures.
If possible, use the pre-printed envelope and label included in your tax package. If not, make sure you use the address of the correct IRS center for your state.
Put enough postage on the envelope.
If it is returned to you for insufficient postage, it might not be processed in time.
Following these pieces of advice can help make the process of filing taxes go much more smoothly and will help to ease the stress that comes along with handling your taxes. If you still have questions about the process, be sure to call a tax attorney in Michigan at the law firm of Bendure & Thomas. Their skilled lawyers will assist you in any way they can to properly file your taxes or settle any disputes.
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