There are several taxpayers today who have not filed their taxes for decades not but that should not worry you because everything is possible. There are others who have never filed their taxes and are not ready to pay the taxes. What most people don’t know or are not aware of is the penalty for unfiled tax returns. This penalty differs from one country to the other. If you are not able to pay the IRS that does not mean that you should stop filing your tax return. Here are some of the frequently asked questions concerning the unfiled tax returns.
If you owe back taxes should you file anyway?
It is not a crime when you owe the IRS taxes but it is a crime when you fail to file your tax returns but once you are caught the penalty will be severe. Therefore it doesn’t matter whether you are paying anything to the IRS but it is very important for you to ensure you file your returns. When you are not having enough money to pay them, it is the time you are supposed to negotiate with the Internal Revenue service.
What penalty does the IRS attract for unfilled tax returns?
According to IRS, failing to file attracts a higher penalty as compared to failing to pay. According to this statement, It is important for you to ensure that you file your tax returns and you should do this on time to avoid being penalized. Also, it is important for you to ensure that you pay as much money as you can so that they don’t accumulate.
Between filing back all taxes and filing personal bankruptcy which one should come first?
It is recommended that you fill back all your taxes before you proceed to filing the personal bankruptcy taxes. The filing of the bankruptcy makes it easy for you to discharge some of your taxes that have been owed. This can only be possible if you show your taxes to the bankruptcy court for the years that you have not been paying so that they can help you get discharged.
With the back taxes owed to the IRS, can one get passport?
There is no state that denies its citizens passports because of owing the IRS some money. But your state government can decide to either revoke or even deny you a passport because of violating some tax rules or because you owe your IRS huge taxes. If you have been denied your passport it means that you will have to pay the tax arrears first before being allowed to take your passport.
How to file old taxes when you don’t have the required tax information?
This is easy but the law requires that you use the best of your knowledge when filing your old returns and it should be done appropriately. Sometimes you will have to contact an IRS attorney to assist you get the required financial details and any other old tax records. For more information visit taxreturn247.com.au