Garland Back Taxes and Late Filing

Getting Current Again

Falling behind is common among small Garland businesses and families: a slow year, an illness, a bookkeeper who left. The longer it lasts, the more penalties and interest build up. BOMCAS works with Garland clients remotely to file missing returns and resolve balances.

Penalty relief and Texas disclosure options are set out on the Texas back taxes page; here are the problems we see most in Garland.

Unfiled Personal Returns

The IRS generally expects the last six years of returns to be filed to be considered current. When you have not filed, the IRS may file a substitute return using only income reported to it, with no deductions or dependents. Filing your own returns usually lowers the bill. Refunds are lost if not claimed within three years of the due date.

Unpaid Payroll Taxes

Businesses short of cash sometimes stop depositing payroll taxes. This is one of the most serious tax problems, because the withheld income tax and the employees' share of Social Security and Medicare are held in trust for the government. The IRS can assess the trust fund recovery penalty personally against owners and managers responsible for paying them. Acting early, filing all Forms 941 and setting up payments, limits the damage.

Sales Tax Audits

Comptroller auditors review restaurants, bakeries and convenience stores by comparing purchases with reported sales. When records are incomplete, they estimate taxable sales from markups, which often overstates them. Manufacturers face audits of exemption certificates and purchases, and auditors frequently find taxable supplies bought tax free. We prepare records before the audit and review the auditor's work.

Misclassified Workers

Salons, contractors and small plants that paid workers as contractors may face IRS or TWC claims. The IRS Voluntary Classification Settlement Program lets qualifying businesses reclassify workers going forward with a reduced payment. TWC may assess unemployment tax on wages for workers it finds to be employees, often after a former worker files a claim.

Forfeited Companies

Companies that fail to file franchise tax reports lose their right to do business in Texas, and eventually their charter. We prepare the missing reports and pay any tax and penalties so the company can be reinstated.

Property Tax Delinquencies

Unpaid property taxes accrue penalties and interest, and attorney collection fees are added after July. Homeowners 65 or older or disabled can defer property tax on their homestead while they live there, although interest continues to accrue.

Collection Notices

IRS letters escalate from a balance due notice to a final notice of intent to levy, after which wages and bank accounts can be seized. Responding before the final notice keeps more options open, including payment plans, temporary hardship status or, in some cases, an offer in compromise. The Comptroller can also freeze bank accounts and file liens for unpaid sales tax, and can refuse to renew a seller's permit.

Businesses That Closed

When a Garland shop or restaurant closes without telling the Comptroller, the permit stays open and missing sales tax returns attract estimated assessments and late penalties. The same happens with franchise tax for companies that were never formally ended, and with TWC accounts. Filing final returns, closing the permit and ending the company properly stop new bills from appearing years later.

Our Approach

Get IRS transcripts and Comptroller records.
Rebuild income from bank statements where needed.
File the missing returns and reports.
Request penalty relief where eligible.
Arrange payment plans.
Set up records to stay current.