On: December 12, 2022

IRS Experienced Tax Experts on Past Due Federal Tax Returns Pasadena

The due date for most taxpayers to file their year 2021 Federal income tax returns or for extensions is April 18, 2022.

Some taxpayers will appreciate and take advantage of the extra three days to file returns or for extensions after the typical “April 15” filing deadline.

Other taxpayers will not file their returns or for extensions by April 18.  For some of these taxpayers, failing to timely file returns or for extensions by April 18 is nothing new; they are already delinquent taxpayers, as they have not yet filed their year 2020, year 2019, year 2018, and/or possibly even earlier year Federal income tax returns.

Having past due Federal tax returns is a major problem.

If you are in Pasadena and have not yet filed a Federal tax return that is already due for any year, you need the assistance of an IRS experienced tax expert in Pasadena who can help you address this problem with minimized negative consequences for you.

 

Reasons for Failing to Timely File Federal Tax Returns

There are many common reasons that taxpayers cite for failing to timely file Federal tax returns.  These reasons include:

• “I forgot”. Forgetfulness is not an acceptable reason for failing to timely file Federal tax returns.
• “I was lazy”. Laziness is not an acceptable reason for failing to timely file Federal tax returns.
• “I was confused”. Confusion is not an acceptable reason for failing to timely file Federal tax returns.
• “I did not know”. Ignorance of the law does not support failing to timely file Federal tax returns.
• “Filing income tax returns violates my constitutional rights”. The Constitution does not support failing to timely file Federal tax returns.
• “I did not file my taxes last year”. Failure to timely file Federal tax returns in one year does not support failing to timely file Federal tax returns in a subsequent year.
• “I could not pay my tax liability so I did not file”. Inability to pay your tax liability does not support failing to timely file Federal tax returns.
• “I was told that I was not required to file a tax return this year”. Except if based on such advice from the IRS or a competent tax professional, being told that you are not required to file a tax return this year generally does not support failing to timely file Federal tax returns.
• “I was unavailable”. Except in a few limited situations (including being hospitalized with a serious illness, overseas in the military, or incarcerated), your unavailability generally does not support failing to timely file Federal tax returns.
• “My records are unavailable”. Except if your records were accidentally destroyed (such as in a fire), unavailability of your records generally does not support failing to timely file Federal tax returns.

The point is that nearly all of these reasons are unacceptable excuses, which will not justify the failure to timely file Federal tax returns.

The Problem of Past Due Federal Tax Returns

 

If you have past due Federal tax returns, you face various adverse consequences, including:

• You are subject to civil “failure to file” penalties. These civil “failure to file” penalties are 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25% of the unpaid taxes.
• Typically, past due Federal tax returns lead to past due Federal tax liabilities and both interest and civil “failure to pay” penalties. The current interest rate charged by the IRS on underpayments is 3%.  Civil “failure to pay” penalties are .5% of the unpaid taxes for each month or part of a month that taxes remain unpaid, up to a maximum of 25% of the unpaid taxes.  If both a “failure to pay” penalty and a “failure to file” penalty are applied in any month, the “failure to file” penalty is reduced by the amount of the “failure to pay” penalty for such month.
• The IRS may hold back your income tax refund for a taxable year if you have any past due Federal tax return for a prior taxable year.
• If you are self-employed, any self-employment income that you earned but did not report by not filing a Federal tax return will not be reported to the Social Security Administration and will not enable you to receive credits toward Social Security retirement or disability benefits.
• Lenders seeking your tax returns may not extend financing to you because you did not file a Federal tax return.
• The IRS has the right to file a “substitute” tax return for you, which may not give you the full benefit of all the deductions, exemptions, and credits that you are entitled to claim.
• Perhaps most importantly, failure to file a Federal tax return is a crime. You can be subject to significant criminal fines or go to jail.

How to Minimize the Adverse Consequences from Past Due Federal Tax Returns – Hire an IRS Experienced Tax Expert

 

A past due Federal tax return cannot be made current; it is already past due.  However, action can be taken to minimize the adverse consequences from past due Federal tax returns.

This action consists of two steps.  First, you need to prepare the outstanding Federal tax returns.  Second, you need to file these past due Federal tax returns in an appropriate matter.

The first step is self-explanatory.  You want to prepare the outstanding tax returns as quickly as possible and as favorably as possible (legally including all deductions, exemptions, and credits, and otherwise reducing your tax liabilities, as much as possible).

The second step is more nuanced.  Many issues arise concerning how to file your past due tax returns in an appropriate manner, including:

• Should the past due tax returns be filed as they are prepared year by year or instead be filed all together at one time?
• If you have been contacted by someone at the IRS concerning your past due tax returns, should you file the returns through such person?
• Would it be helpful to include some written explanation of why a return is being filed late with the filed tax return?
• How to address the problem of “substitute” tax returns filed by the IRS?
• What payments should be made with the filed tax returns?
• If full payment of the outstanding liability (which likely includes tax, interest, and penalty liability) cannot be made, what approach (such as an Installment Agreement or an Offer in Compromise), if any, should be proposed with the filed tax return to settle the outstanding liability?
• Can the past due tax returns be filed in a manner that reduces your exposure to criminal liability?

These issues involving the appropriate manner to file past due Federal tax returns require an overall strategy beyond just simply preparing the past due tax returns.  The best person to develop and implement this strategy is an IRS experienced tax expert who has handled numerous prior cases of past due Federal tax returns.

An IRS tax expert who has significant experience representing clients with past due Federal tax returns has the knowledge on how to best file these returns in an appropriate manner.  Such IRS experienced tax expert most importantly knows how to most effectively deal with the IRS (both orally and in writing), formulate a payment approach, and proceed in a manner that can minimize the risk of criminal prosecution.

 

Leading Tax Group – The Best IRS Experienced Tax Experts on Past Due Federal Tax Returns in Pasadena

 

If you are in Pasadena and want to resolve your past due Federal tax return situation as favorably as possible, you need the assistance of the IRS experienced tax experts at Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!).

Leading Tax Group has substantial experience and knowledge in both preparing past due Federal tax returns and filing past due Federal tax returns in an appropriate manner.  It has helped many clients resolve their past due Federal tax return circumstances with minimized negative consequences.

Leading Tax Group, based on its substantial experience and knowledge in these matters, is the best IRS experienced tax experts (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena to successfully represent you in your past due tax return problem.

Leading Tax Group has a conveniently accessible office in Pasadena at 225 S Lake Avenue, 3rd Floor.

If you want to address your past due Federal tax return situation and reach the best outcome, you need the aggressive IRS experienced tax experts from Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!).

For the best IRS experienced tax experts (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena, contact Leading Tax Group now at (800) 900-4250 and schedule your free consultation today!