| Problem? Yes and No. No because you can | | | | the money, plus interest if it applies to the |
| file ASAP. Yes, because penalties and | | | | IRS. Contact Us (Note: If you own Real |
| interest can be fairly steep. (Generally, | | | | Estate or have a Small Business and IRS has |
| interest is charged on any unpaid tax from | | | | sent an intent to Levy, it is best to |
| the due date of the return until the date of | | | | contact an Enrolled Agent or a Tax |
| payment. The interest rate is determined | | | | Professional as soon as possible).Your |
| every three months and is the federal | | | | question might be, at this point, "If I did |
| short-term rate plus 3 percent. Interest is | | | | NOT file my taxes, how do they know how much |
| compounded daily)(If you owe tax and don't | | | | I owe"? |
| file on time, the total late-filing penalty | | | | |
| is usually four and one-half percent of the | | | | Answer: IRS completes your tax return for |
| tax owed for each month, or part of a month, | | | | you; based upon 1099s and W-2 information |
| that your return is late up to five months. | | | | from your employer. The tax liability that |
| If your return is over 60 days late, the | | | | IRS computes stands as the collection amount |
| minimum penalty for late filing is the | | | | UNTIL you file your tax return for that year. |
| smaller of $100 or 100 percent of the tax | | | | And of course their tax return almost always |
| owed)If IRS has sent you communications that | | | | generates a higher tax liability then if you |
| you had to sign for - then your time may be | | | | had filed your own taxes!Taxes Will Travel |
| short before they start the process to levy | | | | specializes in filing Back Taxes for |
| your wages or your bank account. Once this | | | | Individuals. A consent form from the client |
| happens you will need to talk to them one way | | | | is necessary in order to obtain income |
| or another, either by calling them or by | | | | information from IRS for the year(s) in |
| contacting a tax professional who will call | | | | question. Once this task is completed and SS |
| them for you. (I recommend the second | | | | numbers, dependents, deductions, etc |
| option)If IRS levies your bank account, your | | | | information is received the tax return(s) can |
| bank must hold funds you have on deposit - up | | | | be completed immediately.Cassandra is a |
| to the amount you owe, for 21 days. This | | | | Registered Tax Professional and Instructor |
| period allows you time to solve any problems | | | | for Basic Tax Classes in the San Francisco |
| from the levy or to make other arrangements | | | | Bay Area. |
| to pay. After 21 days, the bank must send | | | | |