You have several tax obligations in Florida, and failing to meet those obligations can lead to fines, civil penalties, and even criminal investigation in rare cases. When you owe the Internal Revenue Service (IRS) back taxes, you should take action to file your returns and pay what you owe. Understanding how to file back taxes in Florida, including through filing amended returns, addressing delinquent returns, and navigating the IRS Voluntary Disclosure Program, is crucial.
Voluntary Disclosure vs. Filing Amended or Delinquent Returns
Voluntary disclosure is a program for willful non-filing of your unpaid taxes. This means you knew your tax responsibilities and failed to meet them. If you owe the IRS back taxes and the noncompliance was not willful, there are other options to voluntarily address these errors, including:
- Amended returns: If you made an error on a return you have already filed, you could file an amended or corrected return to correct the issue. This can be used to correct income, credits, or deductions you claim, and your filing status.
- Delinquent returns: When you have failed to file your tax returns, you should file all tax returns that are due as soon as possible. Do this even if you can’t afford to pay the amount in full yet. If you do not voluntarily file a delinquent return, the IRS may file a substitute return in its place, which likely will not include the credits or deductions you may be owed.
There may be other options for addressing back taxes that you did not willingly fail to file. A tax professional at TaxSmith, LLC, can assess your situation to determine what options are right for you.
Understanding the IRS Voluntary Disclosure Program
The voluntary disclosure program lets taxpayers report income that they didn’t disclose to the IRS. You can resolve your tax debt by paying all that you owe, and get protection for potential criminal investigation and conviction. The program is for taxpayers who willfully failed to comply with tax laws or committed a tax-related criminal offense. This can include:
- Failing to report income
- Failing to pay taxes
- Failing to provide information returns
- Overstating deductions
Your income cannot be from illegal sources or activities to qualify for this program. You must also provide a complete, truthful, and timely disclosure to qualify. Timely disclosure means that your disclosure occurs before:
- The IRS begins a civil examination or criminal investigation, or notifies you that it is going to conduct either.
- The IRS is notified by a third party of the noncompliance, such as an informant, the media, or another agency.
- The IRS begins a civil examination or criminal investigation that is related directly to the information being disclosed.
- The IRS receives information related directly to the information being disclosed through criminal enforcement actions, such as a subpoena or search warrant.
If the IRS learns of noncompliance before your disclosure, you will not qualify for the voluntary disclosure program. Instead, you can face criminal consequences. In fiscal year 2024, the IRS completed 2,481 criminal investigations.
The Voluntary Disclosure Process
Voluntary disclosure through the IRS involves the following steps:
- Preclearance and eligibility: This involves filling out part I of Form 14457, which requests certain information to determine if you could qualify for voluntary disclosure. This form is faxed to the number provided by the IRS.
- Preliminary acceptance: If you are allowed preclearance, you can then file part II of the form, which will provide all the necessary information. This is filed electronically and must be done within 45 days of receiving the preclearance letter.
- Civil examination: If the form is approved, then you will receive a Preliminary Acceptance Letter, and you will be given a civil examiner for your case. You must cooperate with the examiner and provide any requested documentation and other information.
FAQs About How to File Back Taxes in Florida
Does the IRS Have a Voluntary Disclosure Program?
Yes, the IRS has a voluntary disclosure program. It enables taxpayers to report undisclosed income to the IRS. If it is done in a timely manner, and is a complete and truthful reporting, it is considered voluntary disclosure. This can help taxpayers minimize the consequences of failing to report their income as long as they work with the IRS to pay what they owe. An attorney can help you navigate this process and protect your rights.
What Is the IRS One-Time Forgiveness?
IRS one-time forgiveness is a form of tax relief through first-time penalty abatement. You can waive certain penalties and their associated interest from your total tax liability if you have a good history of tax compliance for the past several years, including not having un-abated penalties for several tax years. Penalty abatement does not remove the principal debt you owe the IRS, but can reduce the amount you owe.
How Much Does It Cost to Hire a Tax Attorney in Florida?
The costs of hiring a tax attorney in Florida depend on the complexity of your back taxes case, the amount of debt owed, and whether the legal matter involves liens, audits, wage garnishments, or negotiations with the IRS. Some attorneys charge an hourly rate, while others offer flat fees for specific services. At TaxSmith, LLC, we offer affordable tax services.
Why Do You Need to Hire a Tax Lawyer in Florida?
You need to hire a tax lawyer in Florida if you are dealing with tax debt, unfiled returns, a liability you can’t afford, or collection actions from the IRS or the Florida DOR. A Tampa state tax lawyer can help you quickly and accurately address unfiled returns, address collection actions, and take steps to negotiate a debt you can’t repay. They can help you navigate the process of voluntary disclosure correctly and in a timely manner, without admitting wrongdoing.
Experienced Tax Attorney at TaxSmith, LLC
At TaxSmith, LLC, we can help you assess your options when you have unfiled returns or back taxes. There are 18 IRS Taxpayer Assistance Center (TAC) offices in Florida, including offices in West Palm Beach, Jacksonville, and Tampa.
Our firm can represent you in negotiations at the TAC offices when negotiating your tax debt. We can also help you navigate a voluntary disclosure with the IRS Criminal Investigation office in St. Petersburg, north of Sarasota. Reach out to our firm today for over a decade of tax law experience.
