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The answer is simple. File it as soon as possible. The largest penalty rate at which the IRS is allowed to impose is for the late filing of a return, 5% a month up to a maximum of 25% or an effective rate of 60% per year. If you have any available funds remit it with the return. The late payment penalty is 1/2% per month or an effective rate of 6% a year.
Scenario II
You have filed your tax return, there was a balance due but you couldn't pay it. Now the IRS is sending you past due notices. What should you do?
The intimidating IRS collections notices may just be the start of your tax worries. Do not ignore the IRS. You will only make matters worse and the problem won't go away. Now may be a good time to hire an IRS Tax Representative.
An IRS Tax Representative could stop you from saying or agreeing to something that could be foolish or untrue. Consider hiring someone other than the original preparer. Assign them the task of both communicating with the IRS and reviewing the tax return in question to verify if it was prepared correctly and that no deductions were omitted from the original filing.
Scenario III
Worse than tugging on Superman's Cape, worse than Spitting into the Wind, you have gotten the IRS MAD. They are threatening liens, levies and more.
Obtain competent professional assistance immediately. The Tax Representative should be able to buy you some time until he/she has had an opportunity to review the situation.
At Life Time Planning Inc., we will review your tax return to see if it was prepared correctly, and we will review your account to see if you are a candidate for the abatement of penalties. We will then assist you in preparing an offer in compromise. You may be able to settle with the IRS for less than the amount you owe. We may be successful in getting you into a payment plan without a levy.
Tax liens are like being called a bad name. You may not like it, but it doesn't actually hurt. However, levies hurt. The IRS takes money from your checking or savings account and perhaps even from your wages.
Our firm has been in practice for over 30 years. During that time we have prepared over 15,000 tax returns. Of all the tax returns we have prepared we have only had three clients audited by the IRS. However, we have had the opportunity to practice before the IRS on over 200 audit engagements. We have even gone before appeals three times and won all three cases.
We service clients through out the U.S., Australia and France.
If you need Help Contact Us or call us at 847-215-8630 for a confidential consultation.
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Personal Financial Specialist
