If you have found yourself anxious and overwhelmed with back taxes that you have yet to file, now is the time to file them. If you need to file back taxes, the sooner you get your delinquent tax filings in the better. When dealing with the Internal Revenue Service, there is a special policy in place pertaining to back tax filings; if you voluntarily file your delinquent tax forms they will not prosecute you, whereas if you fail to fulfill your obligation you run the risk of being prosecuted by the IRS. Penalties and interest can also accrue on the back taxes you owe at tremendously rapid speeds, and you will soon find yourself in deep, unconquerable debt.
The reasons for you to file back taxes are myriad. In addition to potential fines, imprisonment, and hefty penalties, you must keep in mind that just because you do not take action on your back taxes, it does not mean the IRS will not take action. The Internal Revenue Service will purposely file what is identified as a substitute tax return; the return is completely absent of federally accepted exemptions; you cannot personally deduct or account for your special deductions, and thus, the total liability you fax for taxes is instantly increased. It is far better for you to get your tax forms together, to gather up necessary documentation, and to file back taxes. Even better, if you turn to tax solutions offered by Tax One Solutions, you can have experienced tax experts help you get your back taxes filed with greater ease and the maximum deduction you are eligible for.
Whether or not the Internal Revenue Service files a substitute form, you should still file delinquent taxes; once you do, the forms can be adjusted and you may be able to reduce what you owe substantially. Not filing taxes is the worst thing you can possibly do; if you end up owing the IRS and you have an outstanding debt to the agency, it can result in the destruction of your credit, the loss of Social Security benefits, and great financial difficulties in general.
Once the IRS begins taking action on your debt, collection methods vary, and none of them are enjoyable; collection methods can include things like wage garnishments, a levy on your bank account or property, or liens being imposed on some of your assets. If you get your back taxes filed and you pay the taxes you owe, or at minimum, work out a payment arrangement of some kind, you can avoid all of the latter actions by the IRS.
The IRS will come after you. The truth of the matter is that the agency utilizes extremely sophisticated computer programs to record and track all tax filings. At some point in time they will become aware of your delinquent taxes and they will catch up with you. The longer the timeframe the more damage you incur financially. The penalties and interest on back taxes add up incredibly quickly.
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