If you haven’t filed your return by the due date, including extension you may face a “failure-to-file penalty”. The IRS will assess a penalty if you Taxes are not filed on the original due date whether you filed an extension unless you have a considerable cause preventing you from paying your taxes timely.
There are variable remedies to your situation if you haven’t paid your taxes. However, stand a better chance of optimal success if you choose to work with an Enrolled Agent (EA). EAs have access to the IRS like no other tax preparer. The department of treasury trains EAs. The access is greater because the IRS is reports to the department of treasury. This ensures a relationship of trust is built in with your EAs. Which ultimate bodes well for the taxpayer.
The IRS Lists the following on their website in reference to failure to File
If your return wasn’t filed by the due date (including extensions of time to file):
- You may be subject to the failure-to-file penalty, unless you have reasonable cause for your failure to file timely.
- Tax not paid in full by the original due date of the return (regardless of extensions of time to file) may also result in the failure-to-pay penalty, unless you have reasonable cause for your failure to pay timely, or the IRS has approved your application Form 1127.pdf, Application for Extension of Time for Payment of Tax Due to Undue Hardship.
- Interest is charged on taxes not paid by the original due date, even if you have an extension of time to file or pay, and is also charged on penalties.
- There’s no penalty for failure to file if you’re due a refund. However, you risk losing a refund altogether if you file a return or otherwise claim a refund after the statute of limitations has expired.
- An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances. After the expiration of the three-year period, the refund statute prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid.
The IRS technically, does not have a statue of limitation of collecting any outstanding taxes you may owe. There effective date to begin collection begins when you file the taxes. If you wait years to file, the IRS will assess penalties and interest from original the date the taxes were do.
If you’re facing failure to file penalties as result of unfiled tax returns, contact the enrolled agents at King Financial Services. King Financial Services have assisted taxpayers over years and have proven experience with the IRS. Contact King Financial Service today.