Many people run afoul of the Internal Revenue Service when they fail to pay their taxes or file their tax returns on time. Working with a professional tax consultant, you can avoid such legal trouble.
People fail to file their tax returns for many reasons, such as money problems, misinformation, or even sheer ignorance notes. Gleaning from taxation compliance experts such as Cantley Dietrich, others find the filing process a tad too complicated that they put it off as long as possible.
One thing that you should know is that the taxation system centers around citizens honoring their tax obligations voluntarily. The Internal Revenue Service has to make sure that citizens live up to these expectations. Therefore, the IRS is not as evil as many people have come to believe.
They Will Work with You
The government imposes taxes on individuals and businesses to raise money for crucial services to the nation as a whole. Higher tax collection means that the government can provide quality services to the citizenry. Therefore, it’s in the best interest of the IRS not to offend the taxpayer.
If you have fallen behind on your taxes, it doesn’t automatically amount to a penalty. If you make a voluntary disclosure, the agency is amenable to getting into some agreement. You can negotiate an installment payment plan or even a reduction in tax liability. Coming forward lowers your chances of facing criminal prosecution. Part of the agency’s duty is to encourage voluntary compliance among people who didn’t file their returns on time.
Not Everything Amounts to Tax Evasion
Knowingly refusing or declining to pay or file tax returns is a criminal offense, and you would be in direct violation of the law. The IRS has the mandate to file criminal charges against you, and that can result in considerable jail time. However, not everyone who makes this mistake ends up facing this serious criminal charge.
If you cooperate, you’re unlikely to get into any legal trouble. People who are often involved in illegal activities are the ones who end up being sued. Such individuals have no intention to pay as they have to explain their source of income. Since they’re breaking the law, such people are unlikely to evade paying taxes, which makes them criminally liable for charges.
Don’t Ignore Your Messages
If the IRS notice some discrepancies in your records, they will often reach out to you through various means. It’s essential that you respond to such contacts as failing to do so might be seen as contempt. Visit their offices if they require you to do so and get to the bottom of the matter. In some instances, it might be a small misunderstanding that you can clear up rather quickly. Providing them with the necessary documents can help clear up the air quickly. Ignoring summons can lead the agency to prefer charges against you.
Be on the Side of Caution
If you are not too sure of how to go about the tax filing process, you’re better off consulting an expert. Such a professional can help you navigate the tricky situation and come out unscathed. They can offer credible advice and guidance and help you escape any legal trouble in the future.