Failure to File Tax Returns
Failure to File Tax Returns
IRS will not negotiate with you if you have not filed all your tax returns.
Not filing also provides opportunities to cause yourself a lot of grief outside of owing taxes. Even if you don't have to file an income tax return because your income is too low, you have to file if you want a refund or earned income credit.
You can be subjected to criminal investigation for willful failure to file a return or tax evasion. You will at least be subject to an assessment using the IRS "Substitute for Return" procedure. What happens here is that IRS figures your taxable income without considering deductions, business expenses or anything else except the standard deduction and one exemption for you then computes the tax on that. And penalty. And more penalty. And interest. This can yield a liability that is heart stopping!
If you want to file an offer in compromise, make an payment agreement, get a levy released or if IRS has made a Substitute for Return assessment for a year you didn't file, you must file a correct return first. I can get documentation to prepare them for you. Missing or lost records can be reconstructed using substitute records or indirect accounting methods.
What if IRS owes you money? If you have a refund, IRS can't pay it if your return is more than three years late. Don't blame IRS, it didn't write the rules.
Don't
Lose
Your Social Security: If you are self-employed, you lose any social
security benefits for income reported three or more years late. Years down the road,
your social
security check will be cut and you will still owe the tax. This is a
double whammy that will follow you for the rest of your life.
There can be good news: Some clients who failed to file returns and whose wages were being levied on ultimately found they were owed refunds.
Let me prepare your missing returns and get you back in the system. If past years returns had errors, you may be entitled to a refund. I can prepare amended returns for all open years.
Michael S. Cash, Enrolled Agent
Toll Free Phone (866)
711-9467