While starting a new business is exciting, you have many responsibilities, including legal and tax compliance. Understanding business taxes is one of the most significant challenges for new entrepreneurs. The process can seem overwhelming, but with the proper guidance from experienced business and tax attorneys, you can minimize risk. Avoid costly mistakes by contacting France Law Firm to help with business tax navigation.

Choosing the Right Business Structure

The type of entity you choose for your business, whether it is a sole proprietorship, limited liability company (LLC), non-profit company, partnership, or corporation, directly impacts your tax obligations. For example, a sole proprietorship may be the easiest to set up and handle taxes, but it exposes your personal assets. LLCs and corporations provide liability protection and more options for growth, but have complex tax rules.

For example, the Internal Revenue Service (IRS) taxes corporations as separate entities, so you risk double taxation when you distribute profits as dividends. A business law attorney can help you choose the best entity that aligns with your goals while minimizing risk.

Federal, State, and Local Taxes

Every business owner must comply with federal, state, and local tax requirements, each with its own set of rules. Federal taxes include income tax, payroll tax, and self-employment tax.

State tax laws include sales taxes and business license fees. You may also have alcohol and tobacco taxes or the “hotel tax,” a transient rental tax.

Local governments may also require taxes in the form of licenses, franchise taxes, or permits. Location and business type determine the type and amount of tax local governments impose.

Recording and Documentation

Diligent documentation is the key to successful business tax navigation. Document each transaction, whether it’s a sale, expense, payroll transaction, an asset or a deduction. Accurate records can make tax filings easier and support claims during audits. It can also reveal potential savings.

A business tax attorney helps you implement proper documentation procedures and can educate you and your staff on compliance. The attorney can also prepare documentation during a dispute or audit.

Deductions, Credits, and Incentives

Small businesses can benefit from many tax deductions, such as startup expenses, home office costs, supplies, equipment depreciation, insurance, travel, and professional fees. You may also qualify for credits for certain activities, such as research and development, hiring, implementing energy-efficient upgrades, and participating in local or federal incentive programs.

Not every expense is deductible, and some credits involve strict qualification rules. Overestimating deductible expenses is a standard error. Business tax attorneys can help protect you from red flags and ensure you claim all your legitimate savings while minimizing IRS challenges or audits.

Building a Long-Term Tax Strategy

Tax planning is not just for tax season. It’s something you need to do throughout the year. New entrepreneurs should schedule quarterly reviews with a business tax attorney to reassess business goals and financial structure. Proactively planning for credits, deductions, estimated payments, changes in law, and possible restructuring can significantly reduce tax liabilities.

A strong tax strategy also minimizes cash-flow squeezes and keeps investors, lenders, and others confident in your business’s viability.

When to Call a Business Tax Attorney

You should contact a business tax attorney as quickly as possible in certain circumstances, including:

• Your business faces complex or multi-state tax filings, especially after seeing growth or expansion.
• You received an IRS notice or audit request.
• You have concerns about compliance.
• You are planning a merger or acquisition, or are onboarding investors.
• You are structuring employee compensation, stock options, or deferred benefits.
• Navigating international tax exposures, including potential double taxation.

Contact France Law Firm Today to Take Control of Your Business Taxes

Navigating business taxes is an essential component of entrepreneurship. When you understand legal requirements, maintain accurate records, and work with skilled business law and tax attorneys,  you can significantly increase your chance for success.

Don’t leave your business’s financial health to chance. Contact an experienced business tax attorney to develop compliance strategies and identify saving opportunities.

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Starting a business in the complex market in 2025 can be exciting if you know how to avoid legal pitfalls and regulatory hurdles. Ignoring them can sink a company—even the most promising—in a heartbeat. From the type of entity you choose to data privacy, understanding the key legal considerations can help avoid costly mistakes and create a solid foundation. An experienced business law attorney can guide you through starting a business.

Choosing the Appropriate Business Structure

Your business structure impacts personal liability, taxes, fundraising, and even future growth. Selecting the correct business entity prevents restructuring later, which could be expensive.

Business entities include:

• Sole Proprietorship: No personal liability protection. Taxes pass through to your taxes.
• Partnership: Easy to set up, but you share risks and profits. It has the potential for internal conflict.
• Limited Liability Company (LLC): This type of company is very flexible and offers liability protection depending on how you set it up. It is increasingly popular for small and medium businesses.
• Corporation: A separate legal entity, whether a C-Corp or S-Corp, which usually means no personal liability. However, it has more regulations and paperwork.

Business Registration and Brand Protection

Once you choose a name, register your business—even if it’s a sole proprietorship—with Florida’s Secretary of State Office to protect the name and your brand. You will also need a federal Employer Identification Number (EIN), which provides another layer of separation between your business and you personally.

Before registering, conduct a thorough search to ensure your chosen business name does not match another. It confuses customers—you could send yours to the other business, and the different business owner could file a lawsuit against you for using their name.

If you have intellectual property, such as formulas or a logo, consider trademarking it to protect your brand. Even unintentional infringement could result in legal disputes and forced rebranding.

Licenses, Permits, and Regulations

Many businesses need specific licenses and permits for various industries, including restaurants, healthcare providers, financial services, hairdressers, etc. Additionally, you must abide by any regulations that affect your industry. Finally, you must ensure your chosen location has the appropriate zoning for your business.

Operating without permits or obtaining the wrong zoning can lead to fines and forced closure.

Employment Law

You must understand and comply with state and federal employment laws. Good hiring practices include compliant offer letters and employment contracts. You must also know wage and hour laws for Florida and the United States, including minimum wage, overtime, and recordkeeping laws.

Workplace policies can also cause legal issues. Outline required workplace practices, including anti-discrimination and harassment policies in your employee handbook. An experienced business attorney can guide you through understanding legal requirements and draft compliant employee-related documents.

Contracts

Contracts are the foundation of your business. Each type of relationship, including clients, vendors, partners, and employees, should have a clear written contract to protect you and them. Key clauses should include the scope of work, payment terms, termination conditions, intellectual property ownership, and dispute resolution mechanisms.

Generic templates available online can expose you to risk. Tailor contracts to your industry and unique business circumstances.

Additional Considerations

The scope of legal considerations is broad for most businesses. Other factors that are key to a successful business include:

• Data privacy and cybersecurity
• Data collection laws
• Breach notifications
• Intellectual property issues, including patents, trademarks, and copyrights
• Non-disclosure agreements
• Tax obligations and compliance

You may have to register with tax authorities at the federal, state, and local levels for various taxes, including employment taxes such as FICA and Social Security, sales taxes, and local taxes.

Don’t Take Chances: Experienced Business Law Attorneys Can Help Set Up a Business

Launching a business regardless of economic times means navigating complex legalities. Planning ahead of time to ensure you set up your business correctly goes a long way toward its success, as it allows you to create a solid foundation.

Call 850-224-1040 or complete our online contact form to speak with the experienced business law and tax attorneys at France Law Firm.

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Cultivating Strong Leadership

For a business to go from one generation to the next, it must nurture the next generation of leaders to take over the position of its current leaders. The new leaders must be as strong and knowledgeable as the current leaders, or the business could fail. Implementing mentorship initiatives and leadership development programs and preserving knowledge about the business all lead to a smooth transition.

Adaptability and Innovation

New technological advancements constantly affect the business landscape. A successful business must adapt to advancements and consumer preferences, or it could fail. Ensuring that future generations also embrace adaptability and innovation provides a better chance of future generations remaining successful.

Fostering a Strong Culture for Your Company

Your culture is the center of your business and a good part of its success. Your customers are loyal to you, in part because of your culture – you have the same beliefs they have. When you hire employees with the same values, they further that culture and share the same values as your customers, creating a bond between the employees, business, and customers.

Prioritizing this same culture through those who will eventually take over the business increases the chances of the company remaining successful through the generations.

Diversification

As years go by, new markets appear. New generations can diversify into new markets, whether new products and services or new geographic areas, mitigating the risk of failure in future generations. Adding new products and services ensures you remain relevant through the years, as you are spreading risk over multiple geographic regions and sectors.

Customer Relationships

Without customers, you don’t have a business. Just as you nurture future generations of leaders, customers nurture future buyers. You keep customers by listening to your customers’ feedback, building trust, and investing in personalized service. You can anticipate your customers’ needs.

A child sees his or her parents patronizing your business and will often continue patronizing that business when they become older—as long as the business continues to provide the excellent service the parents enjoyed.

Planning for Succession

Above anything else, you must plan for succession to preserve it for future generations. Some businesses plan for multiple generations, which can be done through trusts as long as the company stays in the family. A Florida estate planning attorney can help you create an estate plan to preserve your business for future generations.

Additional documents required to protect your business for future generations include financial and medical powers of attorney. Florida has several types of trusts that can protect your business.

For example, should you become incapacitated, can the right trust seamlessly transfer control of the business to your adult children or another trusted family member or friend to manage until you are no longer hindered? A trust can also protect your business against certain creditors, such as hospitals and nursing homes.

Create a Comprehensive Estate Plan to Protect Your Business

Anything can happen at any time. Protecting your business from excessive taxes, creditors, and lawsuits significantly minimizes the risk of failure and allows future generations to enjoy the same benefits of business ownership you have. Mrs. France handles estate planning, probate, federal income tax planning, and business formation.

With experience in all three areas, France Law can draft a comprehensive estate plan to help protect your business from creditors and excessive taxes and ensure a smooth transfer to the next generation.

Contact France Law today for an estate planning consultation for your business.

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Inheritance and Wealth: A young person may receive an inheritance from a loved one that has substantial value. Decisions about that inheritance or other accumulated wealth are left to the courts without a will.

Personal Property: Although not everything you own has substantial monetary value, the sentimental value can be priceless. What happens to personal belongings such as jewelry, automobiles, photographs and even social media accounts matters to those you leave behind.
One of the ideas that tends be missed by young adults is that a will is an act of kindness. It allows your loved ones to understand your wishes and demonstrates how you felt about them.

Parents Have Long-Term Responsibilities
There’s no arguing the fact that becoming a parent inextricably changes your life. After the birth of a child, you come to realize a powerful sense of responsibility for another human being. That duty extends beyond your lifetime as well. These are the reasons why parents need a will.

Put A Guardian In Place: If something unfortunate were to happen to you and the child’s other parent, decisions would revert to the courts. Although judges focus on the child’s best interest, they cannot know your values or the depth of relationships you have with others. Who you view as the best person to raise a child may not be the same as the courts.

Business Management: The financial resources you leave behind are likely to require some level of oversight. If you own a business, your heirs may not be old enough or have the expertise to continue its operations. Unless you are satisfied that your life’s work could be sold off, it’s imperative that a professional handle the operations going forward so your children can benefit from the revenue.

Personal Wealth Management: One of the more favorable ways that parents care for children after they’ve gone is to create a trust that portions out money to support minor and adult children. Minors will likely require a trustee to help manage affairs until they are able. In some cases, it may be your parental decision to parcel out money even after they are adults. You know your children and a will can extend your parental love.

Seniors Have Substantial Need For A Will

Unlike young immortals, elders tend to consider creating a will more seriously. Still, many of our valued elders continue to kick that can down the road. This type of procrastination about creating a living will can prove detrimental for a number of reasons.

Medical Care: A living will directs loved ones and medical professionals about the type and level of care you desire. It provides doctors with written, authorized advice about how to proceed should you become incapacitated.

Puts The Right Person In Charge: A living will gives a person of your choosing the legal authorization to help manage your health care or financial affairs in the event you are unable. It puts you in charge of who is in charge.

Peace Of Mind: A will can resolve potential family disagreements before they occur. The document can offer detailed information on a wide range of health, business and wealth distribution subjects. Knowing that family, friends and loved ones are fully aware of your wishes allows them to celebrate your life to the fullest.

There is no wrong age to create a will because that day has already passed. Regardless of age or station in life, a will is an act of kindness to the people in your life. If you would like to create a will or update an existing document, contact the compassionate attorneys at France Law.

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As a business, it’s important that you check if your accounting records reflect what you’ve been doing the whole year. They should be balancing to avoid any issues with the ‘’tax man”. Legal activities should be involved as you do this.

What’s the Focus for December?

December is recorded with slow business operations. This is because people are looking forward to the New Year with new plans that will push them to the end of the following year.

It’s important that you do a thorough review of the years financial records. They are essential in decision making for the coming year. Many companies find this challenging due to improper record-keeping and some unusual activities.

In case the business is not in the position to successfully wrap up the accounting year, problems are likely to arise. The owners are not able to read the failures or successes of the business. The problem is rolled over to inaccurate assumptions on tax filling processes. More costs are incurred if the business has to do the same for annual Government auditing.

Hiring a Lawyer

In case a taxation crisis erupts when closing the year, a lawyer may help. Although the problem may not go to this extent as many companies take the issue of taxation very serious. However, if there is an imbalance in the auditing process, you are likely to arrive here.

Working with a tax lawyer will not only help you evade the problem but it’s also less expensive than when you take the matters into your hands.

A tax lawyer will help in the following ways:

• A medium sized company is not complete with only an accountant. The tax lawyer chips in to assist in strategies for tax planning and accounting practices. Some companies opt to employ the lawyers as employees of the company.
• Corporate tax law. In fact, many of the attorneys have specialized in this and can really come in handy in such a crisis. They are mainly essential in big companies as they oversee the legal relationships with business structures. Their workload is during the taxation season.
• Some companies operate overseas. The fact that they operate away does not mean that they can evade taxes. This is a vice that is not tolerated in any country. However, it’s important to be aware that you should still meet your tax obligations no matter the crisis. The law attorneys have the knowledge and they can advise you accordingly in this complex area of taxation.

What about the Back Taxes?

Back taxes are the taxes that you are unable to pay when the year comes to a close. In case you find yourself in this situation, be prepared to pay extra penalties and interests. Asking for an extension makes no change.

According to attorneys, it is reasonable to pay back the back taxes as soon as possible. You can never get away with the back taxes. In addition, the revenue collectors will ensure that they do whatever it takes to get it.

These include placing levies on banks, accounts and garnishing your wages. In some cases, they can come and possess the business or sell it to clear the tax. However, this is not likely to happen as there are laws that govern the tax collection. It is advisable that you find a way of clearing up the back taxes before it is too late.

Bottom Line

Closing the year is not only important for taxation purpose but also for the general performance of the business. To ensure that you have a smooth ending of the year, ensure that you have kept proper accounting records right from the beginning of the year.It is advisable that you hire an attorney that will work in conjunction with the financial department for a smooth running of the business.

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Before dubbing the IRS the “Scrooge” of gift giving, keep in mind that without some standard many transactions could be recorded as gifts. But the federal government also recognizes that things such as land, homes, stock investments and other assets can be gifts in the truest sense, even though they may have high dollar values. That’s why there are certain short- and long-term tax exemptions in place.

What Qualifies as a Gift?

The IRS takes a similar approach to define a “gift” as the common birthday present. It was purchased by one person and transferred to another with no strings attached. In other words, the recipient is under no obligation to pay the donor back or perform a duty.

Like the birthday gift, the recipient takes immediate possession and control. That’s important to understand in terms of more complex asset transfers. The federal government would generally not allow something to be considered tax-exempt if it involved a future transfer. In other words, you wouldn’t be able to gift a home and portion out the value at $15,000 annually to stay under the limit. But there are avenues you can utilize to gift wealth over time and stay under the annual cap.

Gifts and Trusts

There are a variety of trusts that can be established to provide annual benefits under the annual $15,000 limit. For example, a minor’s trust can have a single beneficiary and provide that person with an annual tax-exempt amount under the gift exclusion. Although this type of irrevocable trust generally gives the beneficiary full control over the assets at age 21, its value tends to be that sums exceeding the annual limit can be easily moved and doled out over time.

Gifts that May Enjoy Unlimited Tax Exemption

In the IRS’ eyes, any gift can be counted. That might seem unreasonable in terms of modest birthday and holiday gifts. Fortunately, the federal government is pragmatic about excluding certain ones. These types may enjoy an unlimited annual exemption.

• Tuition and other educational expenses paid on another person’s behalf.
• Medical expenses for another person.
• Gifts made to a spouse.

Gifts made to charitable organizations.

The federal government sets an annual limit before taxes on many others. The threshold for 2014-2017 was $14,000 and that number increased to $15,000 in 2018. Married couples may also give away items they co-own and the limit doubles. Jointly owned gifts for 2014-2017 would enjoy a limit of $28,000 and $30,000 for 2018.

In addition to these annual limits, the IRS provides a lifetime maximum. That figure was set at $5.45 million in 2016 and $5.49 million in 2017. The recent Tax Cuts and Jobs Act boosted the lifetime limit to $11.18 million in 2018 and $11.4 million in 2019.

It’s important to keep in mind that gifts you make above the annual limit may simply be deducted from your lifetime exemption. If you are uncertain about how gifts made over the course of your life have impacted your ability to make non-taxable asset transfers, speak with an experienced tax and estate planning attorney.

Gifts between Spouses have a Wrinkle

It generally holds true that gifts between spouses are exempt under the federal guidelines. The importance of married couples ability to move property to each other is widely known as unlimited because couples share the wealth.

But the federal government does place a high limit on gifts made to spouses who are not U.S. citizens. Gifts made to non-citizen spouses enjoy a special annual exemption of $152,000 for 2018. Anything above that would be subject to taxation or deduction from your lifetime limit.

If you are thinking about making a substantial gift, it’s important to work with an experienced tax and estate planning law firm. Contact the France Law Firm.

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Infrastructure

Infrastructure is a word we’ve heard in the news recently as our government considers spending money to refurbish roads, bridges and federal buildings. These construction projects promise to provide jobs for our citizens and circulate money throughout local economies. However, without the Federal Income Tax (FICA), corporate taxes and tariffs, there would be no way that our roads and bridges could remain operable. No private entity, even a group of them, would be able to fund large-scale federal infrastructure spending. Without taxes, you may not have a road to drive to work on.

Subsidies

Speaking of driving, part of the expense to build the car you’re driving may well have been subsidized by the federal government or revenue collected by your state government. From manufacturing to research and development to corporate tax breaks, these government forces combine to allow companies to build and sell relatively cheap cars and to distribute relatively cheap fuel. Subsidies help a range of local industries from agriculture to education.

Education

College will be one of the most expensive endeavors for most families that send kids to get a higher education. Student loans will likely eat up a substantive chunk of the salaries of those college graduates. Yet, without some help from federal, state and local government revenues, some families may not even be able to send their kids to high school if their families had to pay. Our tax dollars collectively pay for secondary school education for the vast majority of kids in the United States. And when they graduate and attend college, federal programs help fund college courses, offer grants for those who wouldn’t be able to afford college and provide loan subsidies to bridge the gap of some expenditures. There are even federal programs that help to mitigate the expense of student loans. Many from prior generations used a federally funded program known as the G.I. Bill to help former members of the armed services pay for college.

Military

Our military protects us at home and advances our interests abroad. We spend about $500 billion on our military (the approximate amount capped by legislation in 2011). That’s 15% of the federal budget. We can disagree on whether we should spend that much; however, few believe that we don’t need a military, and we all fund that through taxes.

Protective and Emergency Services

Our taxes also fund other organizations that aim to benefit the public good. Taxes primarily fund police forces and fire departments. Taxes subsidize emergency health care through deductions and, under the Affordable Care Act, insurance subsidies. Taxes fund the prisons we use to house criminals as they rehabilitate or pay their debt to society. At a local level, the things we take for granted in our everyday lives are funded or subsidized by tax revenue.

In the farewell address of our first President, George Washington, the “father of our country” told his audience “. . . that to have revenue there must be taxes,” and “that no taxes can be devised which are not more or less inconvenient and unpleasant . . .” It’s never fun to pay taxes. Yet, for us to be able to fulfill the promise of life, liberty and the pursuit of happiness, we all have to chip in. If you have, for some reason, fallen behind in keeping your obligation to pay income taxes, a seasoned tax attorney can help. A lawyer can help you negotiate with the IRS to get caught up or take more direct action if your situation is direr.

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If you’re an hourly or salaried employee, perhaps you can sidestep the cost of hiring professional help. But if you own a business, manage a trust or have multiple investments, filing your taxes may still be too complicated to file without professional oversight. And, the legal ramifications of a mistake on your taxes can be severe. Before making a decision about hiring a professional, consider these reasons why an experienced tax attorney may make more sense than a CPA.

What a Certified Public Accountant Brings to the Table

These tax professionals generally have earned a degree in business and have passed the CPA examination. There are also continuing education mandates for many CPAs. Chain tax businesses often require their employees to undergo up to 80 hours of training as well. In all, CPAs are generally qualified tax preparation professionals.

In terms of helping you negotiate a complex tax situation, CPAs bring value to the table. They are trained at reviewing finances and coming up with strategies to lower your tax liability. Keep in mind that some are more adept at this than others. Also, it would not be uncommon for more aggressive CPAs to walk up close to the federal tax code line. While they may be on secure footing in their tax thinking, the IRS may not agree.

What a Tax Attorney Brings to the Table

A tax attorney is an entirely different type of tax professional. Lawyers generally have a 4-year bachelor’s degree, earn a post-graduate degree from an accredited law school and pass the rigorous bar examination. These professionals often focus their practice on business and tax law.

Tax attorneys are uniquely skilled at recognizing the legal ramifications of a filing. Before clicking the electronic filing button or sending out that certified mailing to the IRS, it may be in your best interest to have an experienced tax lawyer review the ways that you are attempting to reduce your tax liability. This proactive step may help avoid getting embroiled with the IRS. And everyday people know that a legal fight with the IRS can be long, drawn out and expensive.

Benefits of Hiring an Experienced Tax Attorney

There are several key benefits of working with a tax attorney rather than a CPA. Obviously, the less complicated tax system may allow people with small businesses, trusts, estates, and investments to bypass the expense. However, the legal elements of a tax disagreement remain the same. These are some of the key benefits of working with an experienced tax attorney.

• Prevention: A tax attorney provides a second set of eyes on your returns. They can advise changes to avoid legal complications with the IRS.
• Intervention: In the event the IRS has questions or challenges your filing, a tax attorney is better equipped to communicate and resolve issues in the early stages. In other words, keep you out of court.
• Life Changes: When people marry, retire or restructure their financial portfolio, the lead person tends to be a law firm with financial planning experience. That’s because laws and regulations routinely change and require an attorney. The challenges of the shifting regulatory landscape spill over into tax law.
• IRS Contact: When the federal government contacts you about your taxes, it’s imperative that you have legal representation. The implications could range from a line-item being challenged to you being accused of a taxation crime. When the IRS calls, even good people face high fines and incarceration.

At the end of the day, the major difference between a tax attorney and a CPA is that legal representation is comprehensive. A tax lawyer can advise you before filing your taxes, communicate with the IRS in the event of a dispute, and defend you in court if necessary. An experienced tax attorney can also provide ongoing guidance during key financial planning phases.

If you have been contacted by the IRS, are considering restructuring your financial portfolio or would just like to be proactive about tax liability, contact the France Law Firm.

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If you have not filed an annual tax return, it’s important that you address this problem sooner rather than later. Thumbing your nose at, arguably, the most powerful U.S. agency could have dire consequences. Call an experienced tax law attorney immediately and avoid being the subject of one of the following frightening scenarios.

Punishing Late Penalties

It would be an understatement to say that the Internal Revenue Service operatives through negative reinforcement.

For each passing day you owe the government money, that debt increases. Failure to make a tax filing will not stop the mounting fees and penalties. In fact, they are likely to be accumulating right now if your check is not in the mail. Consider these two scenarios.

• Failure To File: The late fees on unpaid taxes run 5-percent for each month they are outstanding. Those penalties max out at 25 percent. But the damage doesn’t stop there. If you fail to file or file more than 60 days late, the IRS could make you pay a penalty of 100 percent of the total tax liability.
• Filed But Unpaid: Sending in a completed tax filing is definitely a good first step. Unfortunately, the IRS won’t wave some penalties without a check for the full amount. You can expect to be charged interest at a monthly rate of 0.5, up to 25 percent. The unpaid taxes are basically treated like a short-term loan.

Reimbursements Withheld

Late filers can suffer a penalty they don’t see coming. The IRS can simply sit on your refund as a punitive measure. Because late filings are subject to penalties, those who have a refund coming can find themselves in a tough reimbursement spot.

While you might think the IRS will simply deduct late penalties, the agency can be particularly slow at sending you that long-awaited check. This type of administrative punishment is commonplace when IRS officials see a sketchy tax history. Withholding money shows the horrific power the IRS wields to punish tardy taxpayers.

Late Filers Lose Refunds

It may seem odd, but some individuals treat the IRS like a piggy bank. Although they have refunds coming, they delay filing taxes.

This idea that you have a federally-funded savings account doesn’t fly with the IRS. The agency will not hold on to your refund indefinitely. The government allows filers three years to claim any refund on the books. After that, you lose the money.

The scary part of that scenario is the IRS will put your refund down in its books as a “donation.” Try sleeping at night knowing you just made a “donation” to the IRS.

IRS Will Ghost File

The IRS is more than happy to file a return on your behalf, but it won’t be pretty.

The agency goes to great lengths to identify delinquent tax filers and prompt them to take action. But when they cannot find you or get no response, a bureaucrat will go ahead and fill one out. Needless to say, helpful deductions and items that lower your liability are unlikely to be considered.

What can happen is that the clock will start ticking on interest and penalties at the highest possible amount owed. This substitute filing can be grossly expensive. If you tried to side-step the April deadline due to lack of funds, the IRS could bankrupt you.

Scofflaws Could Go To Jail

Ignoring the IRS’ efforts to contact you about delinquent taxes can end in a nightmare.

For those that typically owe $25,000 or more, strong collections efforts are made. The agency often begins by garnishing wages, seizing assets and ultimately will have you arrested for tax evasion and other charges if the situation persists. Scofflaws rarely get over on the IRS.

The worst part of this IRS horror story is that you could be sitting behind bars while penalties and interest accrue.

If you have failed to file a tax return on time, call an experienced attorney. The last thing anyone wants is to fall under the powerful gaze of the IRS.

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