Back taxes, unpaid taxes and unfiled tax returns, according to the Internal Revenue Service, are a major problem both for individual taxpayers and the Service. The IRS states that about 20% of the taxpayers in this country are delinquent in paying tax or filing returns, or both.

Employees, paid on a W-2, have taxes withheld by their employer. Self employed have no tax deducted and they must put in place a mechanism to pay their taxes on a quarterly basis. Many people do not do that and when time for filing a return comes they realize they did not pay, they don’t have the cash to pay the tax and so they simply don’t file.

Wage earners delinquent in filing and paying taxes more often have claimed more withholding allowances than they were entitled to and when the IRS catches up to them they also need to file for several years.

More than half our clients fall in this category and when they come to us for assistance, our typical client needs to file between 3 and 4 years returns... sometimes many more. Other pages in our web site deal with payment plans and offers in compromise, possible remedies for large unpaid taxes.

Any solution requires that all returns be filed and that the taxpayer be current on withholdings. For at least 5 years that person must be in full compliance with tax law – all returns timely filed and all taxes paid on time.

Another reason our clients find themselves with tax issues is inadequate bookkeeping. Professional bookkeeping services are vital for preventing tax problems. We recommend QuickBooks, which specializes in providing bookkeeping and financial/retail systems implementation services to small and medium sized companies.

For an immediate consultation regarding your tax situation, call us at the number just above. We are based in South Florida and our hours of operation are from
9 am to 5 pm. We also arrange consultations outside those hours if needed.