Here is a bit of information about not filing a past due tax return and the steps that the IRS will take as a result. Taxpayers who don’t file a past due return or contact the IRS are subject to the following:
The IRS will file a substitute return for you. Be aware that this substitute return is based only on information the IRS has from other sources. Consequently, if the IRS prepares this substitute return, it will not include any additional exemptions or expenses you may be entitled to and may overstate your actual tax liability.
Interest and penalties will be assessed and will increase the amount of your payment obligation.
Once the tax is assessed the IRS will start the collection process, which can include imposing a levy on bank accounts or on your wages or filing a federal tax lien against your property.
Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the credits, exemptions and deductions you are allowed. The IRS will generally adjust your account to reflect the correct figures which might result is a reduction of the amount of tax, penalties and interest owed.
Tax problems are solveable with the help of a tax lawyer experienced in solving hard tax questions. Call Mitchell A. Port at (310) 559-5259 for tax help.