Having unfiled tax returns is a fairly common tax issue. The IRS takes a severe view of unfiled income tax returns and may see this as a pattern of behavior that could be construed as criminal. This is often a fairly easy job to get back returns filed. I prepare the filings as an attorney in these settings, creating additional safeguards for my clients.
This is top of my list for helping clients. I represent multiple individuals and companies during IRS or state Department of Revenue audits. The key issue is to realize that the “win” often does not come during an audit (although sometimes it does)-more likely the “win” occurs with a timely filed appeal. My accounting background is particularly important in these settings when business books and records are at issue.
Taxes may be eliminated without bankruptcy through the expiration of the statute of limitations on collections (the period the IRS or state has to collect outstanding taxes); possibly settlement via an Offer-In-Compromise or similar state tax settlement program; or finally, by challenging the original amount of the liability through an appeal.
Bankruptcy also works with taxes-IRS and state. Most people are surprised to learn that “older” income taxes CAN be discharged in bankruptcy.
An appeal often allows a bad early outcome in an audit or collection matter to be placed before a decision-maker that takes a more balanced point of view for my clients. Appeal to the United States Tax Court for IRS issues is often a “win” for my clients. Similar appeal processes for state issues are available and often beneficial for my clients.
Older taxes left undealt with long enough, may lead to the IRS or state addressing payment for you through a garnishment against your wages, or by levying against your bank account. These enforced collection actions by IRS or the state may be challenged with a properly timed appeal.
If your worst nightmare has come true and you’re being investigated by the IRS’ Criminal Investigation Division, you need to have an experienced and competent Attorney to represent your interests. Because jail time and significant fines can be part of this investigation, you need proper representation.
