Filing income tax returns is a daunting task. After waiting a month for all your W-2 and 1099 Income Statements to arrive, you have to find the time to gather all your tax deduction and tax credit documentation. It can take hours, days, even weeks to then take all that information and transfer it into the IRS 1040 Income Tax Return and related supporting forms.
Even if you use a tax preparation service, collecting these documents and meeting with the preparer can take hours of your time. Many people find themselves putting off this process. To an Indianapolis back tax attorney the procrastination of tax preparation is all too well known. However, if tax preparation is too mentally overtaxing (pun intended), the detriment of the taxes owed, interest, and penalties for not completing tax returns on time can be devastating.
Lessons Learned from an Indianapolis Back Tax Attorney
Procrastination of a daunting task such as filing tax returns is not the only reason that people fail to file or pay their taxes. Many people file their taxes but simply fall behind on paying their tax due. Some people may file their taxes but inadvertently underreport their income. These situations result in the owing of back taxes, interest due on those back taxes, and potentially penalties on those back taxes. You will need to find some IRS back tax help in Indiana if you find yourself in this predicament.
What Happens if I Owe Taxes and Don’t File?
If you don’t file your tax returns and you own taxes, any Indianapolis back tax attorney will tell you that tax debt does not disappear, nor is it put on hold until you decide to file. Unpaid taxes will begin to accrue interest immediately after the tax filing deadline–which usually falls on the 15th of April. In the worst case scenario, failing to file or pay your taxes can result in penalties and, to add insult to injury, interest can begin to accrue on any penalties assessed to you. This can add up to an incredible financial burden and quickly spiral out of control for the debtor.
Indianapolis Back Tax Attorney Navigation of Penalties
Penalties can be charged for several reasons. Obviously, failing to file your taxes on time is a common way to incur penalties. Even if you file an extension, if you will owe taxes, you will need to make a payment along with that extension. Failure to do so could result in penalties.
Contacting an Indianapolis back tax attorney as soon as you realize you’ve missed a deadline to file, pay taxes, or accidentally underreported income can help can help you to avoid penalties. However, even if no penalties are assessed for failure to pay by the deadline, interest on the taxes owed will be added to the debt owed to the IRS.
When to Enlist the Help of an Indianapolis Back Tax Attorney
When the fees from back taxes, interest, penalties, and interest on penalties start accruing, the debt can add up really quickly. Just missing or being late on filing a single year’s tax returns can cause a great financial burden on a person. In extreme and rare cases, an offer in compromise could possibly be an option. However, even if that is not an option for you, contacting a Carmel Fishers tax lawyer can help you to identify your options in how to handle a tax debt with the IRS. Indianapolis back tax attorney Julie Camden at Camden & Meridew P.C. is experienced in working with clients to help them navigate their debt with the IRS, seek options to avoid penalties, and get them back into good standing with the IRS to prevent any further interest or penalties that could accrue by ignoring the problem. Connect with Julie to schedule a consultation by calling 317-770-0000 or by using the firm’s online contact form.