You must file taxes each year if you have a tax obligation. Although there is no state income tax in Texas, citizens are required to file Federal taxes based on their taxable income. Texas citizens may also need to file tax returns for sales taxes, property taxes, business taxes, and other tax liabilities that fall under their financial obligations.
Unfiled taxes can have serious consequences, including penalties and interest, collection enforcement measures, and sometimes criminal prosecution. Dealing with unfiled taxes can be overwhelming, particularly if you do not understand tax law and are unsure of your tax obligations. Hiring an experienced tax attorney is the best way to handle unfiled taxes and ensure your legal obligations are met.
Tax Attorney Ronald Arthur Stearns Sr. PLLC
Ronald Arthur Stearns Sr., PLLC can help you with your unfiled or delinquent taxes, to ensure that you meet your tax obligations and do not face severe penalties. He is a knowledgeable tax attorney with almost thirty years of litigation experience.
Ronald Arthur Stearns Sr., PLLC cares about protecting Texas taxpayers and will do what he can to help with your case. This includes offering legal advice on your situation, helping you pay back taxes, negotiating with the IRS to reduce your tax debt, and helping you with unfiled returns. If you are facing a criminal investigation, he can help ensure that you have the documents needed to prove your innocence and negotiate a defense strategy on your behalf.
Protect your financial interests and ensure you do not face severe penalties by calling Ronald Arthur Stearns Sr., PLLC today at 210-853-2135.
Tax Liability in Texas
Taxpayers and businesses in Texas have certain tax liabilities. Texas is one of the few states in the country that does not impose a state income tax. However, citizens are still required to pay income tax to the Internal Revenue Service (IRS), which must be submitted by the yearly due date, generally April 15 (unless April 15th falls on a Saturday or Sunday, at which point the tax deadline usually falls on the following Monday).
IRS income tax changes often, depending on inflation and increased gross income. It is important to understand your tax liability and tax credits each year to properly calculate your tax bill. By calculating your tax bill yourself with the help of a tax professional, including your tax credits and other personal or business deductions relevant to your case, you can try to minimize your tax liability.
Besides IRS income tax, you may be liable for other state taxes, such as property taxes, sales taxes, and franchise taxes. State taxes in Texas have different due dates, depending on the type of tax in question. With different due dates, it is easy to get your tax dates mixed up and accidentally forget to file taxes. Hiring a tax professional is the best way to ensure that you meet your obligations and do not encounter any tax problems.
Penalties For Unfiled Tax Returns
Failure to file tax returns with the IRS and the Texas Comptroller’s Office can lead to serious penalties. The penalties may increase the longer you have unpaid or unfiled taxes, and may even lead to a suspicion of criminal non-filing by the IRS. The penalties for failing to file are much higher than failure to pay. This is because the IRS encourages all taxpayers to file their taxes, even if they cannot pay immediately.
Failure to File Penalties
For failure to file tax returns with the federal government, you may receive a penalty of 5% of the unpaid tax amount for each month. This penalty increases every month that you do not pay, and the maximum fine is 25% of the unpaid tax. These penalties begin from the tax due date unless you have requested an extension.
Failure to Pay Penalties
The penalties for failure to pay are lower, but are still quite severe. If you filed taxes, but did not pay, you can face a penalty of 0.5% of the unpaid tax amount for each month. This penalty increases every month that you do not pay. The maximum fine is 25% of the unpaid tax.
Consequences of Unfiled Tax Returns
In addition to the IRS penalties for unfiled taxes, Texas taxpayers can face further consequences for failure to file taxes. First, the IRS may file a tax return on your behalf. In this situation, the IRS determines the amount of tax you owe without considering your tax deductions and tax credits. You may end up with a tax obligation much higher than what you expected.
If you do not file your taxes on time, you may also have back taxes. These back taxes accrue interest and penalties until the taxes are fully paid. If you do not subsequently file your taxes or pay your tax liability, you will have outstanding tax debt. By not paying back this tax debt, the government can take measures to recover this debt, including wage garnishment.
If you owe taxes to the state, they may impose a lien on your property, which is a claim over your property that prevents you from selling or refinancing it. In the worst-case scenario, the IRS or state government can issue a levy against your property, meaning they seize it to pay back the applicable tax debt.
How Can An Attorney Help You With Your Unfiled Tax Returns?
Dealing with unfiled taxes can be extremely stressful. Without a deep understanding of federal and state laws, it is difficult to manage your tax situation. However, tax attorneys specialize in tax law and have a sound knowledge of tax debt resolution. They can help you handle your unfiled taxes to minimize the consequences as much as possible.
First, tax lawyers can help you file your taxes. If it hasn’t been too long since the due date, your attorney may be able to file your taxes late, negotiate the late fees, and help ensure you do not face harsh consequences.
Your tax attorney may be able to reduce the penalties you face for unfiled taxes. Getting penalties reduced can be quite difficult and the IRS is usually reluctant to do so without a valid reason or alternative. However, with the help of an experienced tax attorney, they can try to negotiate a settlement agreement or payment plan that reduces the penalties and is mutually beneficial.
If you owe tax debt, your attorney can help you reduce the debt as much as possible. They can use their expertise in tax law to assess the debt that you owe, identify any errors, and come up with strategies to reduce the debt. This could include requesting a penalty abatement, negotiating an Offer in Compromise (OIC) with the IRS or a reduced settlement, or setting up an installment agreement to allow you to pay back the debt in monthly payments.
If you are under severe financial hardship and cannot currently pay back the debt you owe, a tax attorney can fight for Currently Not Collectible (CNC) status, which would temporarily suspend debt collection efforts until you are in an improved financial situation.
Negotiate With the IRS
Dealing with the IRS can be extremely challenging. The federal government is tough on those who do not file their taxes on time. Depending on your situation, they could refer your case to the IRS Criminal Investigation (CI) division if they suspect you are intentionally not filing to evade taxes or committing fraud.
As a taxpayer with unfiled taxes, you are in a particularly vulnerable situation when negotiating with the IRS. Because of this, it is important to have an experienced tax lawyer by your side who can negotiate with the revenue officer on your behalf. With their in-depth knowledge of tax laws and practices of the IRS, they can help ensure that you are not taken advantage of and that you get the best outcome possible.
Contact Ronald Arthur Stearns Sr., PLLC Today!
Unfiled taxes can cause significant anxiety and stress. Without knowledge of tax laws and obligations, it is easy to make a mistake and forget to file your taxes. However, the IRS is not so forgiving toward those who do not file taxes, and they may view it as tax evasion, or worse, tax fraud.
If you are dealing with unfiled taxes, contact a knowledgeable tax attorney immediately. Experienced tax lawyers can help you resolve your unfiled taxes and other tax issues you are facing. They can also negotiate on your behalf to minimize penalties and reach a settlement, and help ensure that you do not face severe consequences.
Ronald Arthur Stearns Sr., PLLC is the Texas tax attorney that you need to help with your case. He has an in-depth understanding of both Texas and federal tax obligations, and he will do what he can to protect your best interests.
If you are facing a difficult tax issue, it is in your best interest to hire legal representation. Ronald Arthur Stearns Sr, PLLC has almost 30 years of litigation experience and defending Texas taxpayers. He wants to protect you against the IRS and ensure that you get the best outcome possible in your case.
Call our law offices today to arrange an initial consultation at 210-853-2135. You are protected by attorney-client privilege in our offices.