I am Michael Redden and I am a tax lawyer in Minneapolis, MN. A focus of my practice is civil and criminal taxpayer representation. There are a lot of people out there that haven't filed their tax returns. According to recent IRS estimates, there are at least 10 million tax payers that the government has identified as "non-filers." There are many reasons why it happens, but, for whatever reason, these folks have at least one or more tax returns that were never filed.
Some folks haven't filed returns for over ten years. Every year that you fail to file a tax return your problems with the IRS can compound. If you happen to owe money, the failure to file penalty is 5% each month with a cap of 25% per tax year. This penalty can quickly bring the bill out of reach for many to pay. If you actually let it get to that 25% then a failure to pay penalty of 1/2 to 1% per month can start piling on afterwards. Pretty soon the IRS begins to send out levies and file liens. And, the government really knows how to collect.
Before too long, the situation might seem hopeless to you. Don't think that. The first thing to do is get compliant. In order to be compliant, at least at the federal level, you need to file the last 6 years of returns and be upto date on current payments. Once you are compliant then you can begint to deal with the debt. Offers-in-compromise, payment plans, and even non-collectible status are possible solutions once you are compliant. Becoming compliant will also show the IRS that you really do want to do the right thing. This good faith is sometimes all you need to start a better relationship with the IRS and begin to really tackle your tax debt problem.
If you or someone you know has a tax problem with the IRS or the state department of revenue, feel free to contact me at (763) 515-0478, set up an appointment online ,or email me at firstname.lastname@example.org
Attorney at Law
Redden Law, PLLC
12800 Whitewater Dr.
Minnetonka, MN 55343