Unfiled Tax Returns
The IRS Did Not Forget About You!
“TAXES ARE MORE CERTAIN THAN DEATH,
BECAUSE TAX COLLECTORS HAVE BETTER COMPUTERS.”
The government will eventually figure out that you have not been filing your taxes. Even after years of neglecting a taxpayer, the IRS eventually comes calling. Tax agencies are dramatically improving their investigation practices, and income disclosure rules. Each tax year they are securing more, and more details about your business, and income sources. In the past several years, the IRS dramatically improved their ability to identify and secure missing tax returns. Generally the IRS will want you to file the last 6 years, but they can request even older returns.
Whether you do it voluntarily or due to strong pressure from the government, completing years of back taxes may be a difficult task. It is generally safer to file your missing taxes before the IRS drops its hammer. Not only will you minimize criminal exposure, you may also take advantage of allowable tax deductions and maybe even get refunds.
What Information Is Required To File Back Taxes?
In preparing correct tax filings, you will need records of your earnings and allowable deductions. You should have business records, bank records, W-2’s, 1099’s along with other available documentation for return. If some info is missing, you should do your best to get it from other sources. Financial institutions, business suppliers, customers and even the IRS my have some records of your income and expense activities.
What Happens If I Don’t File?
It is generally safer to file your missing taxes before the IRS drops its hammer. Not only will you minimize criminal exposure, you may also take advantage of allowable tax deductions and maybe even get a refund. Filing your taxes, before the IRS files them for you allows you to deduct certain items to lower your tax bill. No write-offs will be allowed if the IRS files for you. You need to analyze your filing strategy within your financial and tax resolution plan.
What If I Can’t Pay My Taxes?
After filing the taxes you will need to deal with the tax bill. If you owe zero, then you dodged a bullet and can move on. It is a good idea to file in future years, so you don’t have to go through this exercise again. Unfortunately, most non-filers (especially 1099 or self employed people) will owe back taxes. If you are able to quickly pay off the tax debt, do so, and go on with your life. If you are not able to pay off the taxes, you may be eligible for an offer in compromise, or an installment agreement (depending on your situation). If you have a reasonable excuse, you may also qualify for penalty abatement relief, or get the temporary hardship status until your finances improve.
TaxHelpers Help With Filing Back Taxes
We help many taxpayers get back in to the tax system. Some are only behind a year or two, others need to file way back into the 1980’s. Regardless of complexity, tax experts promptly prepare accurate tax returns to manage the risk of criminal prosecution and enforced collection by the IRS and the State. We help you through every step of the process. The Attorney-Client Privilege gives you an additional level of security, and legal protection. Please call for your tax consultation with a Tax Attorney.