Filing Taxes Late? - You Need Legal Advice

According to the IRS, whether you pay taxes properly and on time, or file taxes late and pay after receiving a bill from the IRS (and the bill is correct), taxpayers should always pay the taxes they owe in full.

If taxes are left unpaid, and no obvious or provable effort is made to pay them, the IRS can ask a taxpayer to take action to pay the taxes, such as selling or mortgaging any assets owned or getting a loan. If effort is still not made to pay the bill, or make other payment arrangements, the IRS could also take more serious enforced collection action, such as levying bank accounts, wages, or other income, or taking other assets. A notice of Federal Tax Lien could be filed that may have a detrimental effect on a taxpayer’s credit standing. In serious cases, unpaid taxes could lead to jail time and continual fees and fines added to your current tax problem.

What Can I do if I File Taxes Late?

If the tax deadline comes and goes and you haven't completed your tax return, or you can't pay what you owe, the IRS will make sure there are consequences to pay. However, if you hire an attorney to guide you through the process, the consequences may not be as serious as you fear.

An attorney can request an extension for your tax return before the IRS begins its course of action. This “automatic extension” lasts for four months and gives you enough time to pay your taxes. In fact, approximately six million taxpayers use the advice of tax attorneys to request extensions every year.

If you’re still having trouble paying your taxes and feel you have no option but to file taxes late, a tax attorney can request a secondary extension. Our attorney’s will fight to prove you have good reason for filing taxes late and can prevent extra fees or penalties being added to your bill. If you don't file your request for an extension, the IRS will impose a penalty of 5 percent per month of the tax due, up to 25%. The IRS will also charge you interest on the tax owed. A tax attorney can help you to prove you’re filing taxes late out of necessity, or hardship and not negligence and can make sure you do not fall foul of the law.

If you can't pay all you owe, our attorneys will advise you on how to file a return and send whatever you can afford. If you do this, the penalty for the remainder of your debt will only amount to ½ a percent, compared to as much as 25 percent if you file nothing at all.