Auerbach Law Group, P.C.
White Plains
East Hampton
Call us

Contact our offices

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

White Plains New York Tax Blog

Unfiled tax returns could lead to fees, penalties and collections

Dealing with taxes is something that many New York residents would rather avoid. Of course, if taxpayers do not file their returns or do not file them on time, they could face serious repercussions, typically in the form of monetary fines and penalties. In the event that a taxpayer does not file on time and does not pay owed taxes within a certain period, the IRS may start collections.

If a person fails to file his or her tax return or files after 60 days of the due day, a late filing fee will apply. That fee will either be 100% of the tax amount owed on the return that was not filed on time or $435 for late returns due on or after Jan. 1, 2020. The IRS will go with the lower amount when determining that fee. It is important to remember that the specific dollar amount fee for late returns could differ depending on when the returns were due.

An offer in compromise can help resolve unpaid taxes

When you owe the IRS a significant amount of unpaid taxes, your situation can feel hopeless. After all, you can’t get blood from a stone, and you can’t get money from a depleted bank account. The good news is you may be able to resolve issues involving unpaid taxes without having to take a vow of poverty.

Not reporting income, significant credits could trigger an audit

Most New York residents want to avoid dealing with the IRS more than they absolutely have to. As a result, the majority of taxpayers want to do their best to avoid an audit. While a closer look at a person's tax return could happen for a variety of reasons, knowing a couple of the more common reasons could help taxpayers work to avoid too many questions.

A major red flag that could trigger an audit is if a person fails to report all of his or her taxable income. The IRS knows how much each person makes because the agency receives copies of W2 and 1099 forms. As a result, if a person does not report all of that income, the IRS will likely notice the discrepancy and want to take a closer look.

Receiving notice of a delinquent tax return

The Internal Revenue Service uses numerous notices to contact taxpayers if the agency believes something is amiss with a taxpayer's return or tax balance. As a result, if New York residents receive a notice from the IRS, they may immediately feel a bit anxious and possibly confused about what the notice means. For instance, if a person receives a CP516 notice, it means he or she may have a delinquent tax return.

A CP516 notice is essentially a letter from the IRS indicating that the agency does not have record of a tax return that should have been filed recently or, possibly, for other past returns. In some cases, individuals do not have to file a tax return. If such a person receives this notice, it is possible to call the IRS or mail in Form 15103 explaining why filing was not necessary.

Accusations of a tax-related crime, like fraud, can cause panic

Any type of criminal accusation can have lasting effects on a person's life. If a New York resident is accused of a tax-related crime, the situation can be immensely complicated. Unfortunately, it can be difficult to understand exactly where one went wrong when facing such charges, so understanding tax fraud may be important to someone facing such allegations.

When the Internal Revenue Service suspects someone of tax fraud, it generally means that the agency believes someone intentionally provided false information or omitted necessary information to avoid paying taxes or for other financial benefits. These missteps could include not reporting the entirety of earned income, changing information in order to claim deductions, not paying tax debt or not filing a tax return at all. Of course, other actions could potentially raise a red flag for fraud as well.

Missed due date could leave taxpayers facing collections

A mix-up with information or even forgetfulness can be a serious problem when dealing with the IRS. Some New York residents may think that they have everything in order only to realize later -- maybe due to a notice from the IRS -- that they did not handle a tax-related matter appropriately. Unfortunately, this could result in their facing collections for unpaid taxes.

One issue that could cause some confusion, especially this tax season, is extensions for filing tax returns. Some individuals may think that they should take advantage of an extension because they do not have the money to pay their owed taxes by the current filing deadline, which is July 15. However, applying for and receiving approval for a filing extension does not mean that individuals can put off paying what they owe.

Filing taxes ahead of time could help avoid errors, collections

For some New York residents, it can sometimes seem like tax season drags on. This year, that feeling is more of a reality because the tax filing deadline was extended. However, that deadline is coming up soon, and taxpayers will certainly want to ensure that they have their information and documentation in order to avoid issues that could lead to collections in the future.

The filing deadline was extended to July 15, which means that individuals have until that time to file their returns and pay any taxes owed. It is also important to note that self-employed individuals will need to have their first two quarterly tax payments completed by that date as well to avoid penalties. Understandably, extending the tax season by three months could be a reprieve for some parties, but if they forget to have their tax matters handled by that time, they could find themselves in hot water.

Accusations of tax fraud do not mean a person is guilty

Filing taxes is complicated for most people. Though professionals are available to help, utilizing chain services does not always guarantee that mistakes will be avoided. In serious cases, some New York residents could face accusations of tax fraud if the Internal Revenue Service believes that taxpayers took intentional steps to avoid taxes.

These accusations could come about for a number of reasons. Some actions that could cause the IRS to suspect that fraud occurred include purposefully misrepresenting information, intentionally preparing and filing a false return, not reporting all income, deliberately not paying tax debt, or not filing a tax return at all. Of course, it is not only individuals who could face such accusations as businesses could also be charged with tax fraud for not properly filing payroll tax reports, not withholding income tax and various other indiscretions.

Contact us

White Plains Office
81 Main Street
Suite 307
White Plains, New York 10601

Phone: 914-686-7171
Fax: 914-686-0168
White Plains Law Office Map

East Hampton Office
17 Beverly Road
Post Office Box 2888
East Hampton, New York 11937

Phone: 631-329-7171
Fax: 631-604-6140
East Hampton Law Office Map

Chappaqua Office
726 King Street
Post Office Box 488
Chappaqua, New York 10514

Phone: 914-238-7171
Fax: 914-238-4353
Chappaqua Law Office Map

map-bg map-bg