If you need to File Back or Delinquent tax returns call us today and get back into the system worry free. AFFORDABLE

As former IRS agents and managers we know the exact way to make this a seamless and easy process for you.

With or without tax records we can file your back tax returns, if you’re going to owe back taxes we can work out a tax settlement for you so there are no excuses for you not to pick up the phone call us and get this problem taken care of once and for all.

We have over 206 years of professional tax experience, over 65 years of working directly for Internal Revenue Service and have been in private practice since 1982.

Does IRS Know I Haven’t Filed Back Tax Returns?

The fact is, they already know you have not filed your tax returns and because of heavy inventories they have not had time to work your case. Besides that, millions of taxpayers don’t file their annual tax returns.

But IRS will at some time knock on your door or send you a letter.

The letter will be the CP59.

As a former IRS agent and teaching instructor I have worked hundreds if not thousands of cases both as a former agent and being in private practice.

How many Back Years Should I File?

You’ll hear advice from all sorts of tax professionals on the issue of “how far back should I file my on file for back tax years.”

The good news is, as a general rule you do not have to go back that far.

As a matter of fact IRS has a policy statement regarding delinquent tax returns.
1.2.14.1.18 (08-04-2006)
Policy Statement 5-133

1. Delinquent returns—enforcement of filing requirements

2. Taxpayers failing to file tax returns will be requested to prepare and file all such returns except in instances where there is an indication that the taxpayer’s failure to file the required return or returns was willful or if there is any other indication of fraud.

All delinquent returns submitted by a taxpayer, whether upon his/her own initiative or at the request of a Service representative, will be accepted. However, if indications of wilfulness or fraud exist, the special procedures for handling such returns must be followed.

3. Where it is determined that required returns have not been filed, the extent to which compliance for prior years will be enforced will be determined by reference to factors ensuring compliance and evenhanded administration of staffing and other Service resources.

4. Factors to be taken into account include, but are not limited to: prior history of noncompliance, existence of income from illegal sources, effect upon voluntary compliance, anticipated revenue, and collectibility, in relation to the time and effort required to determine tax due.

Consideration will also be given any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.

5. Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years.

Many times we file only 3 back years.

Enforcement beyond such period will not be undertaken without prior managerial approval.

Also, if delinquency procedures are not to be enforced for the full six year period of delinquency, prior managerial approval must be secured.

Managers  are reluctant to require more back tax returns unless there is an obvious ability to pay the back tax.

Some Bad News

The bad news is many taxpayers who had withholding taken out have lost a refund checks. You can file and claim refunds however for the last three years.

Also if you not filed your W-2s and tax returns you can lose valuable Social Security credit.

What happens if you have lost your tax records

If you have back tax returns to prepare IRS has income transcripts available to prepare your tax returns. The IRS keeps all back W-2s and 1099’s on record for the past seven years.

For those of you who need to file back tax returns you can simply call us and we can help reconstruct your tax returns from little or no records.

As former IRS agents we have learned to prepare tax returns under reconstructive methods.

Why does IRS only do back 6 years?

The answer is very simple, manpower. by next year the entire IRS workforce will be cut down by one third due to attrition and budget cuts. That does not mean IRS is not going to find you. At some point in time you will get that nasty gram in the mail.

As a general rule, the only time IRS will go past six years is if a person has significant assets or can pay all the back years. In those types of cases IRS may ask you to file all your tax returns. But as a general rule, there are so many outstanding cases, so much money to be collected and so many back tax returns that have to be filed, the IRS has put boundaries on past-due tax years is six.

What Happens if you Owe Back Taxes

Do not be afraid if you owe back taxes.

The Internal Revenue Service will simply take a financial statement on form 433F or 433A and make a determination how they will want the back taxes paid.

As a general rule, after IRS reviews your financial statement they will either place your case into a currently not collectible status if your expenses exceed your income, ask you to make a monthly installment payment after they apply the national standards or they may suggest that you consider an offer in compromise to settle your case.

Will IRS go After me criminally If I do not File

The general rule of thumb is to contact IRS before IRS knocks on the door.

Once you have come forth on a voluntary basis it is extremely doubtful that IRS will ever go after any taxpayer criminally unless there is fraud involved.

Remember the IRS wants voluntary compliance and our tax system is based on that principle.

Unless unique situations exist do not be stuck in criminal fear. In the entire United States, and abroad, the IRS as a general rule convicts a total of 3300 taxpayers for a variety of criminal charges per year.

Call us today for a free tax consult.