I'm Darrin Mish. For 32 years I've practiced federal tax litigation \u2014 routine audits, Tax Court cases, and everything in between. If you're facing an IRS issue, here's what you need to know first.<\/p>\n
If you have been knowingly evading taxes by one means or another, it is time for you to make it right or face the consequences. The good news is that the IRS is presently having a Voluntary Disclosure program aimed at allowing tax dodgers to come forward and declare their assets that have not been taxed. And if you are a Maryland resident, the state is also having a similar amnesty program next month. \u00a0Click here to watch or read more information on IRS Back Taxes.<\/a><\/p>\n<\/div>\n<\/div>\n If you wish to make good on your taxes, there are two ways to go about doing it. The first is to go under Uncle Sam’s Voluntary Disclosure program and declare your untaxed assets. The second is to file back tax returns or amended returns and pay up what you owe. Depending on what form of tax evasion you are committing, you should opt for the appropriate way to pay off your taxes.<\/a><\/p>\n If you have not been declaring your assets in an offshore bank account, you should choose to go under the Voluntary Disclosure program. This is because when you voluntarily disclose your assets, you will not face criminal prosecution and the IRS will likely impose a lighter penalty on you. But this Voluntary Disclosure program is not limited to those having offshore accounts only. Many have chosen to voluntarily disclose their assets just to gain official confirmation from the IRS that they are in the clear. The Voluntary Disclosure program ends September 23rd. The IRS says there will not be an extension to the deadline.<\/p>\n If you have been under declaring your assets by reporting less income than you actually earn or by not filing your tax returns for years or by making a mistake in your favor on your returns, then the way to rectify it is to file back tax returns or amended tax returns for each tax year. Tax experts advise submitting each year’s return separately to avoid attracting too much attention from the IRS. If your spouse has been incorrectly filling in her tax returns, you can choose to file your returns under ‘Married filing separately’ to avoid being penalized for your spouse’s actions. If you want to correct certain figures previously reported, you should fill up Form 1040X and explain why you need to make your amendment. If you are submitting returns that you failed to submit earlier, you will have to pay back taxes plus interests and penalties. But if you are amending an earlier return, you will have to pay the amended taxes and interests but not likely a penalty.<\/p>\n