Filing Your Taxes and Affordability

Most responsible people in Fort Lauderdale file their taxes well before the deadline. However, many are afraid to file their return because they don’t have enough money to pay their taxes. Regardless of your income or financial status, it’s never a good idea to neglect filing your tax return. We’ve all heard stories about people who’ve gotten away with cheating on their taxes. But it’s only matter of time before the IRS finds out.

Avoiding your taxes due to affordability is a poor decision with very serious consequences. You can face huge fines, criminal penalties and even imprisonment. Filing your taxes isn’t a voluntary act. Everyone who makes a certain income is required to pay a tax on it. It’s important to make the distinction between filing and paying for taxes. These are two separate actions. The IRS will fine you for both if you don’t address these issues.

Don’t avoid filing if you don’t have enough money to cover your taxes. You can face paying 4.5% per month for not filing and .5 % for not paying. If you do the math, it comes out to 47.5% of owed taxes. Interest will also be added to unpaid tax debt. Don’t try to cheat the government. It’s not worth it.

By failing to file your return, the IRS will be forced to fill out a substitute return on your behalf. Don’t look for the IRS to have your best interests. A substitute return will not include some the standard deductions which can be made by your accountant. You’ll end up owing much more than your original estimate. The IRS will send you a bill known as a Notice of Tax Due and Demand for Payment which includes the taxes you owe, interest and penalties.

If you can’t pay your tax bill, pay as much as you can to reduce interest and penalties. Simply explain your situation to the IRS and they can provide three different resolutions.

  • Installment agreement
  • Temporary delay
  • Offer in compromise

The Greenberg Law Group P.A. can help you resolve your situation. Fort Lauderdale tax attorney Ross Greenberg is committed to looking out for the best interest of all clients. Mr. Greenberg has represented the Internal Revenue Service in United States Tax Court and the United States Bankruptcy Court. He understands how the IRS operates. Don’t try to cheat the government. Be responsible and allow a qualified tax attorney to help resolve your dispute.