Unfiled Tax Returns in San Diego
& Finding a Lawyer for Unfiled Tax Returns
Unfiled tax returns are a common problem in San Diego, California, that cannot be taken lightly. The consequences of not filing your taxes can be severe and far-reaching, impacting everything from your credit score to your ability to get a loan or mortgage in the future. This is why it is critical to understand what unfiled tax returns are, why they happen, and what you can do about them.
What are Unfiled Tax Returns?
Unfiled tax returns are simply tax returns that have yet to be submitted to the Internal Revenue Service (IRS) by the due date. This happens to California residents for many reasons, such as forgetting to file, being unable to pay the taxes owed, or simply being overwhelmed by the tax preparation process. Regardless of the reason, the outcome is the same: The IRS considers you to be in violation of the law. However, once it is clear an individual has missed the filing deadline, the IRS has several measures it can take to collect any taxes owed that can inconvenience and burden the taxpayer more than the initial filing process ever would have. Connecting with an attorney can help taxpayers in San Diego understand their options when filing past-due returns and getting back on track.
Consequences of Not Filing Taxes
The consequences of not filing your taxes are far-reaching and severe. The first and most obvious consequence is that you will owe penalties and interest charges on any taxes you owe. In addition, not filing your taxes can hurt your fragile credit score, making it more difficult for you to obtain loans or mortgages in the future. This can extend the burden of your original tax debt for years to come, impacting how you and your family can achieve other life milestones. Finally, if the IRS decides to take legal action against you, the consequences can be even more severe, including wage garnishment, bank account levies, and even jail time resulting from tax evasion.
What to Do if You Have Unfiled Tax Returns
If you live in California and have unfiled tax returns, it is vital to address the issue as soon as possible. The first step is gathering all the necessary information and documents, such as W-2 forms, 1099 forms, and other income-related documents. You will also need to collect information on any relevant deductions, such as charitable contributions, mortgage interest, and medical expenses.
Once you have all the necessary information, it is time to file your taxes. You can do this by mail or online, and the IRS provides various resources to help you, including online tools, calculators, and tax preparation software.
If you owe taxes and do not have the financial means to pay the full amount, it is important to contact the IRS to discuss your options. In some cases, the IRS can offer you a payment plan or other resolution to help you address your unfiled tax returns. Working with an attorney can also be beneficial, as they can assess your specific burdens and uncover potential areas where you may be eligible for relief while still complying with California tax law.
Whether or not you owe taxes, staying in contact with the IRS and keeping up with any payments or correspondence is important. Ignoring the problem will only make this tax violation worse and can result in additional penalties and interest charges. Tax evasion is a federal offense, and the more it appears that you are deliberately avoiding your taxes, the greater the risk you face of potentially facing criminal charges. Proactively addressing unfiled tax returns and working with a knowledgeable attorney can help you protect yourself, your finances, and your future.
Delia Law Can Help With Unfiled Tax Returns in San Diego, CA
At Delia Law, we believe that everyone deserves a second chance to get their finances back in order. So if you’re feeling overwhelmed by unfiled tax returns, our expert team of tax professionals and attorneys is here to help.
Why You Should Always Consider Hiring a Tax Lawyer
With a focus on personalized attention and tailored solutions, we’ll work with you every step of the way to resolve your unfiled tax returns and put the past behind you. From payment plans to legal representation, we have the expertise to help you overcome even the most complex tax issues.
No matter what your situation may be, our team at Delia Law is dedicated to finding the right solution for you. Our commitment to our San Diego clients is unmatched, and we won’t rest until you’re back on the path to financial stability.
Don’t let unfiled tax returns in California hold you back any longer. Get in touch with Delia Law today and discover the peace of mind that comes with expert help. With a proven track record of success, you can trust us to get you the results you need to move forward with confidence. Contact us today to get started.
California-Specific Tax Laws
California residents are subject to some of the highest taxes in the nation. The same applies to businesses operating in the state or people living outside of California but earning income from the state.
There are four main types of taxes in California:
- State income tax. For state tax in California, the tax rate for those filing as a married couple range from 1% to 12.3%, depending on the income bracket. If you make under $18,650, you are only required to pay 1% of your income in state taxes. However, the other end of the spectrum imposes a 12.3% tax rate on annual salaries of $1,250,739 or higher. There is also a 1% mental health service tax that is imposed on anyone making more than a million dollars a year.
- Local tax. At the local level, the amount you pay locally depends on the county and city in which you reside. There are a total of 58 counties in California, each with its own tax rate. For example, in El Dorado County, the tax rate is 0.25%, while in Orange County, the tax rate is also 0.25%, but with an additional 1.5% added in for local school taxes.
- Corporate tax. The corporate tax rate in California is 8.84%, which is higher than average nationally. These taxes are imposed on the majority of businesses, regardless of whether they are based in California or operate in the state.
Sales tax. In terms of sales tax, there is a statewide rate of 7.25%, which is again higher than average. However, some areas have rates as high as 10%. These taxes are generally imposed on retail items. Residents and shoppers of the state do get relief from sales tax on some essential items, such as no tax on groceries and prescription drugs, as well as reduced tax rates on clothing, prepared food, and over-the-counter medications.