Unfiled and Unpaid Taxes
Tax returns filed with the Internal Revenue Service and California tax agencies involve millions of returns having many different filing requirements. The burden of filing ultimately falls on the taxpayer, whether the taxpayer has an accountant or other service that assists with that filing. For innumerable reasons, taxpayers and/or their tax preparers are sometimes late with return filing, or in some cases, neglect to file a return at all. Tax agencies are particularly punitive to the late filer or non-filer, and they will assess a variety of penalties that can exceed 50% of any unpaid tax. In addition, there are potential criminal penalties that not only cost the taxpayer financially, but can also warrant the imposition of jail time.
Unpaid taxes owed by a taxpayer to the IRS or a State tax agency can be one of life’s most difficult experiences. The agencies often enforce their tax code, and the weapons at their disposal is daunting. Because the agencies have enormous collection powers, they can access (or attempt to) practically all the taxpayer is entitled to. Collection powers include, but are not limited to filing of liens, levies and garnishments of bank accounts, wages, and other sources of income, seizure of property and property rights, legal suits against taxpayers, and in some cases, arrest and imprisonment.
The complexity of tax collection is a specialty unto itself. Taxpayers have brought innumerable legal actions against tax agencies in attempts to stop the collection or require the return of confiscated property. Unfortunately for taxpayers, the Courts almost always side with the tax agency, so collection of unpaid taxes is a fact of life we must deal with. A taxpayer who owes taxes and cannot pay those taxes within a short period of time needs an expert analysis of their specific problems and then utilize the services of that expert to resolve the tax issue. Our comprehensive tax collection background enables us to quickly determine proper actions and alternatives for our clients.