The Importance of Filing Back Taxes

If you are behind in filing your taxes, it’s very important to get help. Back taxes are just the start of other tax problems, and penalties and interest will continue to grow at an alarming rate. A lot of people miss a year of filing or receive an IRS letter in the mail, and then stop filing their tax returns. Next thing they know, it’s been years since they last filed. If you’re in a similar situation, it’s okay, we can help! Back taxes are a specialty of Kansas City Tax Mediation.

So what exactly happens when you don’t file your taxes? First of all, if you owe money, the IRS will tack on penalties. The two most common penalties are the failure-to-file and the failure-to-pay. Because the failure-to-file penalty is the greater one, you should file your tax return on time each year even if you’re not able to pay all the taxes you owe by the due date. If you hire Kansas City Tax Mediation to help, back taxes will all be filed and if you can show reasonable cause for not filing and/or paying on time, we may be able to reduce or remove those penalties.

The other thing that happens when you don’t file tax returns on time is you lose your refunds. If you are due a refund but the tax return is more than 3 years late, you will not receive the money nor will they apply it to any other years’ debt. That’s why it’s so important to act now and get help. Back taxes can become a tax lien or garnishment and quickly accumulate with penalties and interest. Call Kansas City Tax Mediation today!

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