Do you have unfiled tax returns? Taxpayers who owe back taxes are eventually assessed an estimated tax by the IRS and the State. The IRS takes the gross income reported by your income sources, and then estimates your tax based solely upon the reported income and withholdings. When filing past tax returns, you are not credited for any dependents you may have, and they do not apply write-offs for you, even mortgage interest.
The State also assesses you in this manner, and if you possess a business license they also apply an assessment based on your occupation. Because the State is in direct competition with the IRS in collecting tax liabilities, they usually assess you first, and then promptly enforce collection action. If this has happened, expect the IRS to follow suit shortly.
The tax assessments are almost always higher than what your tax would be if you filed your return, and in many cases much higher. Additionally, penalties and interest are assessed based on a certain percentage of your tax. This can be devastating and eventually lead to levies against your income and bank accounts.
Tax Solutions Group are experts in delaying collection action. Depending on your individual situation, our tax professionals decide on the best course of action to stop IRS and State’s collection of back taxes. Scroll down to see an example where we were able to help reduce one of our client’s tax liability from $412,818 to only $1,828!