FILING LATE RETURNS

Until you have filed all of your back tax returns, the IRS does not consider you in compliance with the tax laws and will not allow you to apply for a settlement of your IRS tax debt. Along with filing all of your back tax returns the IRS will want you to be current on your federal income tax withholdings if you are an employee or your estimated taxes if you own your own business. Remember if you cannot full pay your income taxes the next time you file your return, your IRS settlement  will be voided.

Once you get current on filing late returns, never allow yourself to file late as the penalties and interest will eat you alive. We have observed over the last 47 years of IRS resolution work that clients who file their next return in February almost never get back in trouble and those who file right before the April 15 deadline or extend almost always get back into trouble. This is a hard as well as a “bad” tax habit to break. If you are serious about staying out of tax trouble with the IRS in the future, this must be your first permanent commitment.