IRS CRACKING DOWN ON TAXPAYERS WHO DON’T FILE RETURNS

IRS Tax ProblemsIRS News

President Obama and the Congress are stepping up the pressure on the IRS to crack down on taxpayers who don’t file tax returns. The Senate Finance Committee Chairman stated, “Those who owe the IRS a tax return but fail to file are doing more than just breaking the law. They are draining our economy of vital resources that we need to pay for health care, education, and even tax relief.”

The IRS is increasing the penalties for those who fail to file tax returns. They are also pursuing jail and increasing and demanding longer jail terms for delinquent taxpayers. Part of the motivation is obviously the increased desire for additional revenue. The IRS admits part of the motivation is also the fact that greater numbers of taxpayers are not filing their returns or paying the tax bill that’s due.

The good news is that filing a tax return in and of itself improves your position with the IRS. There is really no good reason not to file. When you don’t file all kinds of bad things can happen. For instance, the IRS will often file a tax return for you. They call this a Substitute for Return. And in my experience, they always hit you with a bigger tax bill than what you would have if you filed your own tax return. There are other good reasons to file a tax return, but the important point here is if you want to solve your tax problem, the first step is filing that missing tax return. If you need help, you can call our office. In the end, you don’t need to wait until your returns are filed in order to start the process of getting your tax problems out of your life.

Most people who don’t file their tax returns fail to do so because they are fearful, overwhelmed, or just plain don’t understand how the whole IRS ballgame works. Call someone who does understand the system, someone who does work with the IRS literally every day. Once you face up to the problem, it’s not nearly as scary as you think. In fact, the good news is that you will be relieved because you will see that you can finally get the IRS out of your life.