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