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Is it too late to admit to taxable assets?

On Behalf of | Mar 7, 2022 | Tax Law

There are many ways to keep your assets away from the IRS. Yet, doing so runs the risk that they will one day find out.

If you have not told the truth about your assets to the IRS in the past, it is easy to think you are so deep in that your only option is to keep up the charade. Yet this is not necessarily the case.

What is voluntary disclosure?

Making a voluntary disclosure means you own up to whatever you did wrong. So if you underpaid taxes or failed to declare assets, doing so now will reduce the consequences you face if the IRS discovers it for themselves.

The IRS only has limited resources to track down unpaid dues. They know they cannot catch everyone, so they are prepared to help those who own up to past errors by letting them off the hook a little. They win because they get taxes they may never have got, and you win because you can sleep easy at night knowing everything is now above board.

What if I cannot pay?

That does not mean you should stay quiet. Admitting you have dues that you cannot pay gives you the chance to work out a payment plan with the IRS. Remember they are keen to get some money, even if it takes longer than they would wish for and even if they never get the full amount. Something is very much better than nothing for them.

If you find yourself in this difficult situation, make sure you get legal help to work out the best strategy to move things forward and end your tax worries.