Tax Help For Taxpayers Short on Cash: Filing a Tax Return Late is Better than Filing a False Tax Return

Some taxpayers make the mistake of believing that if they can get away with tax evasion, then it’s worth the risk to save the money. However, as the IRS steps up its game to collect more taxes, it’s beginning to get more risky and less worthwhile to do so.

A common problem I hear from my clients is that they want to pay their taxes but don’t have enough money. As a result, they sit on their unfiled tax returns until they receive a letter from the IRS. What many people don’t know is that you can always file a late tax return and a late tax return is always better than a false tax return or an unfiled one.

CCH (http://intelliconnect.cch.com) reports:

Individual Guilty of Aiding the Filing of a False Tax Return; Elements of Offense Proved Beyond a Reasonable Doubt

An individual was not entitled to an acquittal with respect to his indictment for aiding the filing of a false tax return because the government proved, beyond a reasonable doubt, the essential elements of the offense under Code Sec. 7206(2). The evidence showed that the individual was actively involved in the organization, promotion and sale of a tax avoidance system that was the subject of an ongoing IRS investigation and that he encouraged his clients to file tax returns that fraudulently omitted income and included improper and illegal deductions. He did not have a good faith belief in the legality of the system and was aware of a taxpayer’s duty to file truthful individual tax returns; therefore, he acted willfully when he intentionally aided and assisted others in filing returns that were false as to material matters.

By B.K. Wasson

The average client at Tax Resolution Services has four to eleven years of unfiled tax returns. Yet, there are still many tax resolution options for individuals who owe the IRS enormous amounts in back taxes. You can talk to your tax attorney or Certified Tax Resolution Specialist to see if you can negotiate an IRS installment agreement or payment plan.

Another good thing to know is that if you owe the IRS back taxes and can’t afford to pay it come April 15, 2010, you can file your returns and send a money order or cashiers check for $10.00. This takes care of two important things: first, it takes the large 25% failure to file penalty off your shoulders; and second, it creates a computerized record at the IRS showing that you filed on time and you made a good faith effort to pay some of that money you owe. This will lessen your IRS penalties and make your negotiations for a tax settlement easier later on.

Don’t be foolish to think that the IRS won’t find you if you file a false tax return. Get tax help today by calling our office at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com.

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