Hi – Michelle Divan here. I represent taxpayers in Denver, CO – and nationwide – who cannot pay their taxes or have back tax debt. Many times the first reaction to not being able to pay your taxes is to not file. Now that is probably the biggest mistake you can make. Why? Failing to file will get you up to a 25% penalty on the taxes due…that’s right, 5% a month for 5 months. Yikes!
The first step is simple: deal with the issue! It’s not going to go away, so let’s not let it get worse. If you cannot pay your taxes due, there are options such as Installment Agreements, Offers-in-Compromise (OIC), or uncollectible status. Not filing your taxes exacerbates the issue and shows bad faith – not what you need when we are trying to negotiate your tax debt. Further the Internal Revenue Code (IRC) section 7203 is in fact a criminal statute for failure to file a return.
Quickly, you can see how failure to file your taxes can spiral out of control. Don’t let that happen to you, especially not when you have options. If you or someone you know is in this predicament, let’s get it taken care of! You can reach me at 303-250-0122 or via email at [email protected]