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Unfiled Tax Returns

Do you have unfiled tax returns? Filing today may reduce the penalties and interest that you owe. It is never too late to file your unfiled tax returns. Are you afraid that you cannot pay what you owe? Don’t worry, there are IRS programs that can help you. Don’t have all the records or bookkeeping for the unfiled tax returns? Don’t worry, bring what you have. I can obtain whatever documents the IRS has in your file to do the rest. The IRS has several ways to figure out which taxpayers have not filed their taxes. The IRS now teams up with a number of states to combat tax avoidance. They check state records to see if you did not file your federal returns. Plus, everyone you have done business with including your employer and banks has already reported information to the IRS.

Consequences of having unfiled tax returns

Remember, if you are a “non-filer”, in addition to having to pay back taxes, you could be looking at criminal and civil penalties. Filing your unfiled tax returns can avoid all that. To the IRS, getting your back tax payments is a top priority. When you are late paying your taxes, the Internal Revenue Service could subject you to significant legal consequences including:

  • placing tax liens on your property
  • charging added fees and interest for late penalties
  • garnishing your wages (wage levy or wage garnishment)
  • taking your bank or savings accounts (bank levy)
  • obtaining your social security payments
  • procuring your accounts receivable
  • acquiring your insurance earnings
  • seizing real property (in some cases your personal residence)

Did you miss the deadline due to business or personal issues? If so, now is the time to make it right. Filing your past returns should be your number one priority. Why? Because the IRS can create a substitute return by estimating what you owe and billing you for it. Do you really want the IRS preparing your return? The IRS will include all of your income. But, will fail to include all of your deductions. The result, you owe more money than you actually need to pay. If the IRS has filed substitute returns for you can still prepare correct returns to lower you debt. This requires the help of a knowledgeable tax professional.

Can the IRS find me? The IRS has increased its budget for technology that helps locate non-filing taxpayers. The IRS has targeted the problem as a high priority. They use computer matching and software programs to help as well. The IRS Information Reporting System (IRP) matches W-2′s and 1099′s to the tax documents submitted. When the IRS catches up with you, they will send you an automated letter asking you to file the years you haven’t filed. In more severe cases, your file will be transferred to an IRS Revenue Officer. Everything then becomes much more complicated.