Will filing back taxes expose me to additional tax problems?
US taxpayers who have failed to file tax returns, report taxable income or pay taxes where an obligation exist, generally already realize that they are subject to fines and penalties. Depending on the conduct and the circumstances present, the matter may even be referred for IRS criminal investigation. Many people who have failed to satisfy all of their tax obligations, or who have engaged in illegal activities such as filing false returns or income tax evasion, later regret their actions after the severity of the consequences becomes clear. That is, each failure to file a return where there was taxable income could be punished by up to a year in prison. Further mistakes while coming back into compliance can compound problems and may even lead to felony charges. In light of the potentially severe civil and criminal consequences, taxpayers who are not compliant with their tax obligations often fear that they cannot get back into the system without facing prosecution or exacerbating the issues they already face. Others are confused as to the steps and procedures that are likely to correct problems with unfiled taxes without subjecting the individual to criminal consequences.
Working with an experienced Tax Lawyer and CPA, such as David W. Klasing, can help you understand the extent of your tax compliance issues. After a meticulous review of your financial information, he can often craft a strategy that is likely to correct your problems regarding back taxes while minimizing criminal tax exposure.