We’re excited to be partnering with the Shepherd Express on a monthly “Ask The Expert” Column in 2017! The first question we received was: “What happens if someone doesn’t pay their taxes for a few years?”
It’s always in your best interest to file your taxes on time every year, and pay the taxes owed if possible. By not filing, you will get hit with non-filing, late filing, underpayment, and other penalties, as well as interest. On top of that, if you don’t file, the IRS will file what’s called a Substitute for Return or “SFR” on your behalf. They will file a tax return for you…but they won’t factor in many of the credits or deductions that you’re legally entitled to (especially if you own a business). The State will do the same and assess a tax liability based on their estimate of what your liability should be. Almost always, the State estimates are higher than the actual amount owed.
Not filing or paying your taxes may lead to bigger problems. For example, the State or IRS may levy your bank accounts or garnish your wages. But it doesn’t have to be this way. We had a client whose wages were garnished for years just because he had not filed past tax returns. We completed eight years of tax returns for the client, and once they were filed, he received a $4,000 refund. You never know until the returns are filed!
When you start getting tax bills in the mail from the State or IRS, it’s important to complete those past-years returns – you many not actually owe what they say. Filing old returns is the first step toward resolving your tax problem.
If you do owe, there are many programs available to settle your tax liability. Ask us which program is right for you. At Alliance Tax, “We Solve Tax Problems”. We will find a permanent solution to your tax issues.
If you haven’t filed your taxes in a few years, or have the State or IRS on your back, give us a call at 262-786-4442. We are a local company located in Elm Grove, WI near Brookfield Square Mall. We offer a free 1-hour consultation to learn about your situation and make recommendations. Our goal is always to find a permanent solution to your tax problem, and to help you pay the smallest amount allowed by law as your resolution.