How An Attorney Can Help You With Old Unfiled Tax Returns

When you have old and unfiled tax returns, the amount that these taxes are worth can be substantial, and you may eventually be unable to obtain credit or make other financial decisions. If years have passed, it's important to make sure that your old tax returns are filed and that you come up with a plan to pay off your taxes.

The IRS Doesn't Forget

If you have forgotten to file taxes, you might think that the IRS has forgotten about you. This might be true initially because of the large workload that the IRS has. However, they will eventually catch up and will expect to be paid for old taxes.

In some cases, the IRS might file a substitute return. If this is the case, you will not receive all of the deductions and other benefits that you would normally receive as a result of filing a tax return. You will only have a limited period of time to then file a tax return or petition the court before the IRS chooses to use the substitute tax return.

It's Possible to Obtain Old Tax Returns

You might no longer have your tax returns and you might wonder how you will be able to pay off your taxes. This is usually not a problem because your employers were also required to file taxes. As a result, an attorney will be able to assist you in obtaining and filing old tax returns.

Avoid Wage Garnishment

It's important to file old tax returns and start paying your taxes as soon as possible. Otherwise, the IRS might attempt to garnish your wages. This means that money will be taken directly from your paycheck to pay for your IRS tax debt. If this happens, you might not have the money necessary to pay your bills. 

Come Up with a Payment Plan

To avoid having your taxes garnished, you'll need to speak with an attorney who can assist you in coming up with a payment plan with the IRS. Depending on your financial circumstances, you might need to file for Chapter 13 bankruptcy.

If you are eligible for Chapter 13 bankruptcy, you will be able to enter a repayment plan with the IRS. You will then be able to renegotiate your debt and may be able to discharge some of your debts, including tax debts, after you have made payments over the course of several years. However, this is something you should only do after speaking with an attorney.

For more information on filing old tax returns, contact a professional near you.