I Did Not File Tax Returns
Non-filing is a serious problem and can easily blow up in your face. The obvious reason is that you are considered from the start as not cooperating with the tax law. Non-filing taxpayers are one of our specialties. When you are represented by an attorney, you are thought to care enough about your problems to correct them professionally. We represent you against the IRS and State Tax Authorities. The taxing authority will deal with this office. We can prepare the tax returns you did not file. We can represent you regarding the tax debt you owe. Experience is extremely important in successfully representing you if you have non-filing problems. The IRS and other tax authorities can consider drastic measures such as criminal penalties for failing to file tax returns.
Sometime you may discover the IRS or other tax agencies are trying to collect tax from you even if you did not file tax returns or payroll tax returns. The IRS and other tax agencies have been given the power to estimate how much you owe. The estimate is usually based upon the numbers reported to the IRS and does not include deductions you are entitled to claim. The estimate, properly called “substitute for return”, may allow the Internal Revenue Service additional rights that they did not have before. Penalties and interest are based on the estimated amounts.
Frequently, the Internal Revenue Service will send correspondence regarding the failure to file a return. Usually, the letter involves an audit and your failure to respond may trap you later. This failure to respond may affect your ability to file a bankruptcy to discharge or reorganize the tax debt.
An important fact to consider is that the attorney fees you pay for representation regarding tax is deductible in the year you pay our fees. You should not hire any representative other than an attorney because you will not have attorney client privilege and the representative you hire may be the government’s main witness against you in Court.
Many bankruptcy attorneys do not understand tax law the subtleties of tax law as it applies to bankruptcy. They are often inexperienced in representing taxpayers at all of the levels of the Internal Revenue Service or other taxing authority.
Most Certified Public Accountants who practice in the tax area understand how to prepare a tax return. They may be involved with the Internal Revenue Service. They rarely will understand bankruptcy law or the need for attorney client privilege in representing a non-filing taxpayer at the IRS or other taxing authority.