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December 7, 2012
Breakfast with the Experts
January 22, 2013

Whatever you do, file your taxes!

The IRS, and for that matter any state government, doesn’t care how famous or popular you may be. They only care that you file and pay your fair share of taxes as outlined by law. Unfortunately for Stephen Baldwin, he was recently charged with failing to pay New York state taxes for three years that amounted to roughly $350,000 (click here to read his story).

When it comes to the IRS, not filing your tax returns in one of the worse mistakes you can make. It is actually worse than filing yet not paying, which is reflected in the penalties that you face if caught doing either.

One thing is certain–if you owe taxes and don’t file, it is a crime. Penalties can include garnished wages or assets, hefty fines and even jail time. It may take the IRS a few years to find you. During this time however, the interest and penalties only become more overwhelming.

If you find that you don’t have the money to pay, go ahead and file. If you contact the IRS they will work out a payment plan with you. At the same time, don’t think that if you’re facing a bankruptcy that your taxes will be discharged  like a credit care. You will still owe your taxes.

The best way to avoid any of these situations is careful tax planning. If you need help, call an Ourednik Law Offices attorney who can guide yo in sorting out your IRS issues.