Tax Services
Back Taxes · Unpaid Taxes
The Consequences of Back Taxes and Unpaid Taxes
For the vast majority of us, there is no way to get out of paying taxes. If you put off filing your returns, the IRS will penalize you for it. Those with unpaid taxes and back taxes must pay substantial interest rates and late fees imposed by the IRS. As tedious as filing your taxes may be – completing schedules, worksheets, and the tax return itself – filing is obviously much better than accumulating interest on your back taxes. If you don't file your taxes, you may end up facing severe consequences. Some of these include:
- Tax liens
- Tax levies
- Wage garnishments
- Monthly increases in tax debt
- Federal charges
With the help of IRS tax attorney Kenneth Sheppard at Sheppard Law Offices, you can resolve your unpaid tax issues and avoid unwanted consequences from the IRS.
The IRS imposes separate penalties for failure to file and failure to pay so it is important that you not only file your taxes on time, but pay them on time as well. The IRS charges high interest rates on unpaid taxes; in fact, it is not uncommon for penalties and interest to exceed the original tax liability. For example, if you owe back taxes for 2007 in the amount of $2,000, the penalties and interest that will have accrued by 2010 could easily increase the amount of your debt to $5,000 or more. With the help of IRS tax attorney Kenneth Sheppard, you can negotiate a payment plan for your unpaid taxes so that your debt doesn't continue to grow by leaps and bounds.
Reducing or Eliminating Unpaid Taxes
In order to successfully negotiate your back taxes and unpaid taxes with the IRS, you will need to complete the following steps:
- Obtain your income and wage information (and mortgage interest paid) for every year you haven't filed (Sheppard Law Offices can get this information for you if you don't have it)
- Gather documents such as W-2s, 1099s, profit and loss statements, monthly expense reports, mileage charts, etc. for each year you haven't filed
- File all of your outstanding tax returns immediately
You cannot begin negotiations on back taxes and unpaid taxes until all of your tax returns are filed with the IRS. We can't stress this enough: file all of your outstanding tax returns immediately. The sooner you do so, the sooner you can reduce or eliminate the penalties you owe on your back taxes. If you need help filing your returns, IRS tax attorney Kenneth Sheppard can prepare your individual and/or business income tax returns for you so that you can establish compliance with the IRS.
Don't Let the IRS File Your Tax Returns
It may seem like a huge hassle to go back several years and locate all of the paperwork you'll need in order to file old tax returns, but the last thing you want is to let the IRS file your old returns for you. If the IRS files for you, they will use what is called a Substitute for Return (SFR), which will include only the bare minimum of exemptions. Leaving out deductions to which you are entitled will increase the amount of your back taxes, which will in turn increase the amount of your penalties and interest.
If your tax debt is so large that you cannot pay it off in a reasonable amount of time, the IRS may be willing to accept a lump sum for less than what you officially owe. If you can't afford a lump sum, they may allow you to set up a payment schedule. The IRS tax attorneys at Sheppard Law Offices can help you negotiate any of the following options for resolving unpaid taxes:
- Offer in Compromise
- Payment Plan and Installment Plan
- Lien, Levy & Garnishment Appeals and Removal
As soon as all of your delinquent tax returns have been filed with the IRS, tax attorney Kenneth Sheppard can begin negotiating the terms for a fair settlement of your tax debt. Contact Sheppard Law Offices today at 1-877-505-9455 for a free consultation.
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Sheppard Law Offices Co. L.P.A.
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51 North Third Street, Suite 409
Newark, Ohio 43055
Telephone: (740) 345-7138
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Columbus, Ohio 43219
Telephone: (614) 523-3106
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Mt. Vernon, Ohio 43050
Telephone: (740) 392-0404



