For most working adults, filing an income tax return is a part of life. When you enter the working world, or start earning real money, tax is withheld through your employer. As an entrepreneur or business owner, you are responsible for reporting and paying over applicable taxes.
In the past year, economic stimulus checks were paid out to a lot of Americans. Many people who had not filed their tax returns in several years checked in with the IRS, filing returns, and updating their contact information. Failure to file is not illegal for those who owe no taxes. There are some compelling reasons to file your annual tax return anyway, though. Some of those include:
For those who do owe taxes, failing to file, or filing a false tax return can lead to an IRS civil tax audit or even tax litigation. For business owners, looking the other way at tax time, or when payroll taxes are due, can lead to trouble:
Regardless of your income level, it is better to rectify a situation with the IRS sooner than later. The IRS is open to working out tax liabilities with taxpayers to return you to good standing and avoid continued accrual of expensive penalties.
When in doubt—or when you already know you have a problem with the IRS—speak with a reputable tax attorney for advice.
The tax lawyers at Robert J. Fedor, Esq., LLC offer strong legal service if you are dealing with a civil tax audit or a criminal tax charge. With offices in Chicago and Cleveland, call our tax group at 800-579-0997 or contact us online to set up a free consultation.