Back Taxes: The Internal Revenue Service is always looking for ways to improve taxpayer compliance with current tax laws. Two ways the IRS enforces compliance include examinations and collections. Here is some helpful information for you about IRS examination and collection activities:
When selecting taxpayer returns for examination, the IRS pays special attention to taxpayer categories that have, in the past, demonstrated a high degree of noncompliance. This means that small businesses like yours, as well as self-employed individuals, are always under scrutiny. Make sure you report your income and expenses correctly and file all of your returns on time to help stay in compliance with current tax laws.
In matters of examination and collection, the earlier you address ant tax issue, the better. The only thing waiting will accomplish is to increase any interest and penalties that you may owe.
If you have not filed federal tax returns for up to six years, and if you have not received any notices from the IRS, then you can opt to use the voluntary disclosure program. You will still owe taxes – and possibly interest and penalties, as well – but voluntary disclosure will allow you to avoid criminal prosecution.
set up an online payment agreement with the IRS if you owe $25,000, or less, and if all of your returns have been filed. You can check out the rest of the terms for an online payment agreement on the IRS Web site: www.irs.gov.
The information contained here was provided by www.TaxTalkToday.tv, a free, live, monthly interactive Webcast brought to you by the IRS