– You will have additional penalties and interest added to your tax balances
– You will not be able you to resolve your tax debts and stop collection activity
– Not staying in compliance will default ANY tax resolution in the future including an Offer In Compromise
In the vast majority of cases the IRS demands taxpayers file personal taxes for only the last 6 years if they had a filing requirement. States can demand you file tax returns for much longer. Again even after you resolve your taxes not staying current with your tax filings will default any resolution if you don’t file required tax returns.
WARNING! – Many tax professionals and the IRS will have you file too many tax returns which not only costs you money to file but can only increase your tax debts.
This means paying your taxes on time and avoiding owing the IRS again. The IRS and States will refuse any resolution if a taxpayer is not paying sufficient taxes to owe in the future. They demand proof the taxpayer will not continue to owe taxes moving forward. This is VERY important for individuals and businesses.
Paying sufficient taxes can be as easy as changing dependents claimed to paying quarterly or monthly Estimated Tax Payments.