April 15 has come and gone, and while millions of taxpayers are feeling a great sense of relief, numerous individuals and business owners continue to have outstanding tax questions which may have prevented them from timely filing their returns. As a result, these taxpayers may face onerous fines and penalties if they do not take active steps to resolve their issues and get back into full compliance with the IRS.
Fortunately, the Maryland tax attorneys at Rosenberg Martin Greenberg are prepared to analyze even the most complex tax situations and find effective solutions.
Time is of the essence if you owe taxes
Anyone who suspects they will have a tax balance due should act promptly to file their overdue returns. The reason for this is that the IRS is prepared to impose potentially steep failure-to-pay and failure-to-file penalties for those who have delayed the inevitable.
Interest charges on outstanding tax liabilities can snowball quickly, making the eventual amount owed much more onerous than the initial debt. Waiting around and doing nothing is not a viable option, as the IRS always has the option of filing a return on your behalf based on the information it has already received about your situation from Forms W-2, Forms 1099, or other documentation. When this happens, the agency will not take into consideration the deductions and credits for which you may be eligible, ultimately resulting in an unnecessarily inflated tax bill.
While you may be able to correct the record with supplemental information later on, the resulting delays and complications involved with setting things straight can be costly.
E-filing is still available
A common misconception among many taxpayers is that if they miss the April 15 deadline, they will have to file old-fashioned paper returns. The fact is that the IRS keeps the e-file system open and available to taxpayers through October 15 of the current calendar year, providing a convenient option even for those who are late to the game.
Claim refunds while you still can
If you have not filed one or more recent tax returns, know that refunds you are owed may be in jeopardy if you do not act quickly. In order to receive refunds, taxpayers must file returns informing the agency of overpayments within three years of the original due date for the specific return.
Refund amounts on returns not filed within the three-year window will be forfeited to the IRS, something no taxpayer wants to see happen.
Get a fresh start on your standing with the IRS
Each year, many taxpayers find themselves in the position of falling out of compliance with the IRS. Unpleasant consequences can soon follow, including garnishments, tax liens & levies and criminal penalties.
Concerned taxpayers need not allow fear or procrastination make the situation worse than it needs to be. The IRS Fresh Start Initiative was launched as a means to help individual and small business taxpayers regain good standing and catch up on outstanding balances. At Rosenberg Martin Greenberg, our team of tax professionals can guide you through an IRS offer in compromise and other settlement opportunities, mitigating potential fines, penalties and collection activity.
Maryland tax lawyers making a difference
In a tax year fraught with new challenges as well as confusion over the requirements imposed by the Affordable Care Act, many taxpayers felt overwhelmed to the point of missing key filing deadlines. The Baltimore tax attorneys at Rosenberg Martin Greenberg understand that the path to compliance may seem long and arduous, but our extensive experience helping taxpayers negotiate resolutions with the IRS can shorten it significantly.