A Connecticut attorney was sentenced on September 14 to 10 months in federal prison after years of not filing his tax returns.
According to court documents, Michael Simes of Newtown failed to file his individual returns for eight tax years and paid only a fraction of what he owed on the returns he did file. Even when he requested extensions, he still didn’t file or pay. In all, he owed more than $3.1 million in taxes, penalties, and interest.
Not Filing Makes Everything Worse
Many people stop filing because they know they can’t pay. But owing the IRS is a common problem with established solutions. Willfully failing to file is a federal crime.
An extension gives you more time to file, not more time to pay. And the penalty for filing late is generally much steeper than the penalty for paying late. If you can’t pay, file anyway.
How a Tax Professional Can Help
A tax professional can prepare your missing returns, figure out which years the IRS actually needs to bring you back into compliance, and deal with the IRS for you so you don’t have to.
Once you’re filed, they can look at your finances and pursue the right option for the balance: an installment agreement, an offer in compromise, currently not collectible status, or penalty relief where it applies.
Ron Friedman CPA helps taxpayers with unfiled returns get caught up and resolve what they owe. If you have tax returns you haven’t filed, or a balance you can’t pay, call Ron Friedman CPA at 914.712.6919 or visit www.914tax.com for a confidential consultation.
