So, you have not filed tax returns in several, or even many years. Why bother now?
The simple answer is that you are more likely than ever to get caught. The IRS has begun using sophisticated algorithms to detect and locate non-filers. Even if you work in an all cash business, periodically you will get on a plane, buy gas, obtain an ID card, or interact with the 21st Century in other ways. Every such incident will leave a datapoint and sooner or later the IRS connect those datapoints with a name that does not appear on recent tax returns.
If you are like most taxpayers who have not filed tax returns, the problem began during a time of financial crises: unemployment, business loss, divorce, etc. In that first year you probably had not taxable income to report. Over the next few years, you recovered financially and even prospered but you never knew how to correct your situation without causing yourself even more trouble. Now, here you are in a big hole. If only there were a way out…
If you are like other taxpayers who have not filed tax returns, it’s part of a deliberate strategy. In almost all cases this type of strategy does not end well. In the lucky cases, the taxpayer is caught and forced to pay all taxes owed plus so much in interest and penalties the “strategy” ends in terrible financial loss. The unlucky cases end in prison. The laws of probability suggest there must be some taxpayers who get away with it, but if you want to gamble on such long odds file your taxes and buy a lottery ticket which has a greater payout and a much smaller downside. If you’ve followed this misguided strategy you may find yourself in a big hole. If only there were a way out…
If you have not filed tax returns in awhile the most important thing you need to know is that there is a way out. The way out is not simple, and you really need the help of an expert who should be an attorney because the confidentiality of discussions with your attorney is legally protected.
There are several steps to take and many questions to answer in each step. I will begin to describe the process in next week’s blog, which should be posted on Monday, March 15th. In the meantime, if you or someone you know has not filed their tax returns and would like to discuss how to proceed contact me at 312 577-9405, or David@RatowitzLawGroup.com.
We would love to work with you and help you navigate your tax law issues. Please reach out to us today to learn more about us