IRS Taxpayer Mistakes New Haven, Connecticut: Biggest Mistake #1 that Taxpayers Make when Dealing with the IRS in New Haven, CT: Not filing the tax return!

We frequently represent clients in IRS examination and Collection cases in New Haven, Connecticut.  One of the biggest mistakes taxpayers (and their tax practitioners) make is to not file a tax return simply because they cannot pay the balance.

We understand the thought process: I cannot pay the tax.  Therefore, if I do not file the tax return, the IRS will not know about it.  I’ll file it with the IRS later when I have the money.

This is maybe the worst mistake a taxpayer in New Haven, Connecticut or elsewhere can make when dealing with the IRS.

The IRS assesses a “Failure to file” penalty for taxpayers who fail to file the tax return timely: either by April 15^th or by the extension deadline.  The penalty is 25%, and accrues at 5% per month for each month the return is not filed.

We can often work out a deal– installment agreement, currently-not-collectable, etc. - if we get involved in the IRS case early on.  The best advice we have is to file the tax return timely, thereby saving yourself an extra 25% hit on the tax liability, and working out a deal with the IRS to get it resolved.  Avoiding the issue will only make it worse.

If you have any questions regarding tax issues in New Haven, Connecticut or any other area of Connecticut do not hesitate to contact me at (203) 602-5550 or by email at egreen@convicerpercy.com.

Eric L. Green, Esq.

Convicer, Percy & Green, LLP

195 Church Street, 10^th Floor

New Haven, CT 06510

Ph. (203) 602-5550

Fax (203) 286-1311

www.convicerpercy.com