What is Tax Compliance. Why is it discussed with every client?
I represent taxpayers in Lake City and Florida who have tax issues, we have seen an increase in the number of folks coming to us with Tax Compliance Issues.
Tax Compliance is the filing and paying of withholding/1040 taxes. All filings and deposits are current.
For business owners this would include responsibilities of filing proper payroll tax forms (941) and depositing payroll tax deposits.
What should you do if you have several years of unfiled returns?
For non-filers the IRS generally requires a lookback period of 6 years for filing to become compliant.
So what if you can't pay your taxes? File anyways. The penalties for Failure to File are 5% a month until it reaches 25% where it is capped.
The least expensive way to resolve failure to file is to deal with it head on. The longer you wait the more penalties and interest can become a burden.
When negotiating with the IRS for any acceptable resolution compliance is the #1 priority. No deals can be worked out until the taxpayer is current with filings. Deals often require taxpayer to remain compliant for several years.
If you have limited funds than pay the current taxes first. There are options available to resolve back taxes.
If you or someone you know someone who has Failure to File or owes back taxes or some other fed or state tax issue, please feel free to contact me at either (407) 287-6638 or by email @pleclaire@nltr.onmicrosoft.com.
Patrick LeClaire, Enrolled Agent
Lake City, Florida
Ph. (407) 287-6638
Fax (727) 270-8947
pleclaire@nltr.onmicrosoft.com
