Tax season brings with it undue challenges. First, you are expected to grasp the full weight of the financial system. This process is necessary to file effective taxes. Secondly, you should have already made the effort throughout the year to compile the necessary documents and receipts. Failing to do so leads to last-minute frantic searches. Naturally, due to the challenges faced, many individuals choose to simply not engage with the system and hope nothing bad happens.
Unfortunately, according to an expert Pineville, Louisiana CPA, such wishful thinking often leads to further pain and suffering. Failing to file taxes is not just a simple oversight; it can be classified as a crime and can lead to severe legal and financial consequences. You may also attract critical attention from the IRS – further complicating an already precarious situation.
However, there is a way to recover from this problem. While failing to file taxes is a crime, failing to act upon it and correct the mistake is a way to completely ruin your financial standing. Here’s how an expert CPA can help you recover…
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Reconstruct Tax Records
One of the first hurdles individuals face when they realize they’ve failed to file their taxes is the loss of necessary documents. Important tax records, such as W-2s, 1099s, and other financial statements, may have been misplaced or lost over time. Reconstructing these tax records can be a daunting task. A CPA can help you gather and reconstruct these records using various sources, including employer records, bank statements, and other financial documentation.
Prepare and Submit Non-Filed Tax Returns
Once your tax records are reconstructed, the next step is to prepare and submit any non-filed tax returns. This process can be complex, especially if you haven’t filed for multiple years. CPAs are well-versed in tax law and can guide you through the preparation of these returns.
Negotiate with the IRS on Your Behalf
Dealing with the IRS can be intimidating, especially for individuals who have failed to file taxes. The IRS has specific procedures and guidelines that must be followed, and failure to comply can lead to severe penalties. A CPA can act as your representative and negotiate with the IRS on your behalf.
Submit an Offer in Compromise
An Offer in Compromise (OIC) could be a good option if you have unpaid taxes and are unable to pay the entire amount. This program is a desirable choice for people who are struggling financially because it enables taxpayers to pay down their tax obligations for less than the entire amount owing. CPAs can help determine if you qualify for an OIC and guide you through the submission process.
Arrange Installment Agreements with the IRS
If an OIC is not feasible, another option for individuals who owe back taxes is to set up an installment agreement with the IRS. This agreement allows you to pay off your tax debt over time through manageable monthly payments. CPAs can help you understand your payment options and negotiate a reasonable installment agreement based on your financial circumstances.
Represent You Throughout the Tax Preparation and Collection Process
The tax preparation and collection process can be overwhelming, particularly if you are dealing with the consequences of failing to file taxes. A CPA can provide ongoing support throughout this process, representing you in dealings with the IRS and ensuring that your rights are protected.
Anything related to taxes often feels daunting. However, submitting to these fears will only lead to the fears actualizing. The best action here is always to work with expert CPAs. If you’ve already failed to file taxes, reach out to a CPA and look into correcting the situation. Once this is resolved, your CPA can continue working with you to ensure adherence to tax filing!