Back Taxes Attorney in Reno, Nevada

When you owe past-due taxes to the Internal Revenue Service (IRS), you may be dealing with a lot of financial stress and feel trapped. The IRS agency can seize your bank account, levy your personal property, and otherwise make life pretty miserable for you while you dream of a minuscule payment to settle everything. On top of that, the recently enacted Inflation Reduction Act has granted the IRS funds to hire some 80,000 additional agents, who will be tasked with recovering taxes that were unreported or past due. 

It’s important you understand that you have options.  

If you as an individual or a business owner in or around Reno, Nevada, are facing past-due tax issues with the IRS, contact the Law Office of Scott N. Tisevich today. Attorney Tisevich has been helping clients since 1979 prepare their tax returns and meet their liabilities by using programs authorized by the IRS. He stands ready to help you too. He also helps clients in Carson City, Las Vegas, and throughout Churchill County, Lyon County, Story County, Douglas County, and the surrounding areas.

The Importance of Filing Back Taxes 

Even if you lack the funds to pay your taxes, it’s important to file your return on time. Failure to file on time can result in a penalty of 5 percent per month with an overall cap of 25 percent. If you file on time, however, the penalty is only 0.5 percent per month. If you owe no taxes or are due a refund, filing late will not result in a penalty. But, any refund owed you will be delayed by the late filing. 

If you owe back taxes that you have yet not filed an IRS return, the penalties can be huge. If you owe $10,000, for instance, the IRS can tack on an additional 25 percent penalty, bringing the total to $12,500. The IRS is not going to sit back idly, either. They have the means to garnish your income, seize your bank account(s), and even put a levy on your personal property, including the home you live in. 

In addition, if you haven’t filed a return, it will be next to impossible to obtain a personal loan since you will not be able to provide a verifying tax return. Your future Social Security earnings on retirement can also be jeopardized. If you are due a refund or an Earned Income Tax Credit (EITC), those will be forfeited in you don’t file your return within three years of the due date. 

Alternative Ways to Catch Up with Taxes Owed 

If you can’t pay your taxes on the due date (which, in 2023, is April 18), you can request a short-term extension by filling out an online payment agreement. This will give you a 120-day window to pay the taxes owed. The balance due will be charged 0.5 percent per month until paid off. You can also apply for a longer-term installment agreement, but again, the amount owed will be subject to the same 0.5 percent per-month penalty. 

The Offer in Compromise is another option that allows you to settle your tax debt for less than the fully-owed amount. But, it generally won’t work if you have income and/or assets that can be tapped to secure the debt owed. To qualify for an offer in compromise, several things must be true: 

• You filed all tax returns.  

• You have received a bill for at least one tax debt. 

• You have made all required payments for the current year.  

• If you are a business owner with employees, you need to have made all required federal tax deposits for the current quarter and two preceding quarters.  

• You cannot be in bankruptcy.  

The IRS faces a 10-year statute of limitations in collecting back taxes, but with all the collection/levy means at their disposal, you shouldn’t count on escaping your liabilities by waiting out a decade. Plus, during that period, you will find it almost impossible to buy anything on credit.