The IRS cannot negotiate or settle back taxes until you are reporting compliant. That means that all delinquent tax returns must be filed.
There are serious consequences which you can mitigate by filing delinquent tax returns.
- The IRS may view your negligence of filing back taxes as criminal misconduct.
- The IRS may file A Substitute for Return (SFR) which usually overstates your tax liability.
- The 10 year collection statute of limitations does not begin until the delinquent return is filed.
- You incur significant non-filing penalties and interest until the delinquent returns are filed. Failing to file your tax returns is even worse than not paying your taxes. When you owe money and you don’t file a return IRS begins assessing the failure to file penalty the very next day after the due date the penalty is 5% of your tax owed and the penalty is assessed every month and can get up to 25% of your total tax debt.
So long as you have delinquent business tax returns your business and bank accounts are not safe from forced collections and your business can even be closed, your family’s security is at risk and you can be ruined financially.
We help you take the first step towards settling back taxes by getting delinquent business tax returns prepared so that you no long fear the loss of your business or get surprised when the IRS levies your business bank accounts and seizes your assets.