Both state and federal governments require individuals and businesses to file returns identifying if any tax is due and owing (or identify a refund if there is an overpayment), and remit any tax that is due. As such, depending on the business and individual, different types of tax returns need to be filed with the federal and state taxing authorities (IRS and Florida DOR) so that an accounting can be made.
For most Florida individuals, usually the only requirement is to file an annual federal tax return on form 1040 since Florida does not have income tax on individuals. However, if you have only lived in Florida part of the year or you work for an out-of-state company, you may have an additional state filing requirement. If Florida individuals have purchased personal property, such as a vehicle out of state, there may also be the requirement to file a use tax return in the State of Florida. For out-of-state individuals, there may be both federal and state (and local) income tax filing requirements. We help these individuals with their unfiled returns as well.
For businesses, the filing requirements are more complex and likely involve both state and federal filings. Even if your business suffered a loss, depending on how the business is structured, you may need to file business income tax returns at the federal level. These business income tax returns often impact your personal tax filings. Furthermore, depending on the type of business, what products or services it provides and where, and whether it has any employees, the business likely has additional federal and state filing requirements for sales and use tax, unemployment or unemployment taxes, and payroll taxes.
Failing to file required returns can not only lead to penalties and interest, but could also lead to criminal charges, depending on the circumstances.
If you have unfiled tax returns in Orlando, it is essential to work with a knowledgeable tax lawyer from Orlando Tax Law to make a plan for getting back on track. This could require filing some or all past due returns and may also require negotiations with state and federal tax collectors. There is no one-size-fits-all approach to these situations so you need someone who can help you formulate a plan that is unique to your situation.
At Orlando Tax Law, we are prepared to assist you in filing unfiled returns in addition to providing you guidance and representation throughout the entire process. We have CPAs and accountants as part of our team to assist clients with preparing unfiled returns, or even amended returns and other tax filings. If you have your own accountant or CPA you like to work with, we will be happy to work with them in resolving your tax matter. Sometimes we may even suggest you work with your own accountant or CPA, depending on the issues.
Failing to File a Tax Return is a Criminal Offense
Under Internal Revenue Code Section 7203, not filing a yearly tax return when required by law is a misdemeanor. Convictions could result in a fine of up to $25,000, a year in jail, or both. Failing to file a return can also be considered tax evasion under Section 7201 of the Internal Revenue Code, which is a felony under which an individual can be fined up to $100,000 and face up to five years in prison. While criminal implications are usually only considered in egregious situations, it is important to hire a tax attorney to help you navigate the process of filing unfiled returns. The stakes are even higher if there are missing international reporting filing required like FBAR returns. This is where an Orlando lawyer can help someone who has unfiled tax returns.
Clearing Tax Debts Due to Unfiled Returns
If the filing of unfiled tax returns leads to you or your business owing tax, penalties, and interest, we can help with that next phase of the case. Oftentimes the IRS or other taxing authorities will not even consider a payment plan, installment agreement, or settlement on one tax period unless a taxpayer is compliance with all other filing requirements.
If you do owe, once you are considered compliant, we can likely negotiate a payment plan, settlement, or even a penalty abatement.
Ask a Lawyer to Help Resolve Unfiled Tax Returns in Orlando
Failing to submit a tax return to the Florida Department of Revenue or IRS (or other taxing authority) could come with severe consequences. In the most extreme cases, criminal charges may apply. In other situations, tax authorities could implement penalties and fines that increase the overall tax debt.
We at Orlando Tax Law can help you with your unfiled tax returns and compliance issues, as well as the fallout that may result, whether it be an audit or examination, a collection settlement or payment plan, or assistance with a penalty abatement or lien issue. Call us today if you want to sleep better at night and resolve your unfiled return issues.