I Didn’t File My Taxes + What are the Consequences + Former IRS Can Help

December 18, 2015
Written by: Jim Magary
Fresh Start Tax

 

Didn’t File Taxes ? Get Back in the System Worry Free + We are affordable former IRS agents and managers who know the system. Since 1982.

 

16 million taxpayers do not file annual tax returns and if you don’t file prior year’s tax returns at some point in time, IRS will contact you by mail or a knock on the door.

As a former IRS agent rest assure IRS will catch up to all non-filers. Each year they get to his many as they can, and with new computerized tracking systems they’re catching up to non-filers at a much faster pace.

We can file all late tax years tax returns and get you back in the system. If you are will owe tax, we will work out tax settlement as well. As you read below in some cases we only may prepare three tax years to get you back in the system.

Call us today for free initial tax consultation and find out the exact process.

 

IRS Representation

You not have to worry, as former IRS agents we can file a power of attorney and work out all the arrangements so you can be worry free. we simply contact the IRS get tax transcripts and start the process of giving you back in the system were referring.

 

If you have lost your tax records there is no need to worry.

As former IRS agents we are affordable tax experts for the reconstruction of late or back tax returns.

We know the ways and the systems of the IRS and know how to compute income tax or corporate tax returns in which  records have been lost misplaced or destroyed.

 

Lost Tax Records are no problem for us.

There is a very definitive process to prepare tax returns with lost records and we understand and have personal knowledge on how that system works.

You can call us today for a free initial tax consultation and see just how this process works. we’re affordable professional firm that can get you back into the system worry free.

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.

How many Back or Past Due Tax Returns on prior years ?

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.

IRS has a policy statement regarding delinquent tax returns.

1.2.14.1.18 (08-04-2006)
Policy Statement 5-133

1. Delinquent or prior years tax 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:

a. prior history of noncompliance,

b. 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. there are special cases in which the IRS will ask for more than six years. Those cases generally involve those with a great deal of access with a high potential of collection and probability. There are very few cases that meet this criteria.

Many times we file only 3 back years. Each case is different and depending on various factors you will make determinations on the number of back years we will file.

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.

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 or misplaced your prior years 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. Simply by ordering an IRS tax transcript we can determine all the reportable income IRS has on your record.

Therefore delinquent tax filing or Late or Previous Years are no problem.

Generally income tax reconstruction records are put together by looking at various factors:

1. financial statement,

2. expense analysis,

3. bank statements,

4. credit card statements,

5. IRS records,

6. various other factors to back into income, and,

 

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

 

Why does IRS only require back 6 years on back tax returns?

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 = Not to Worry + Tax Settlements

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.

I am I going to Jail?  Very Doubtful

 

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.

We have been in private practice since 1982 and all cases are handled with affordable expert care by true tax professionals.

 

I Didn’t File My Taxes + What are the Consequences + Former IRS Can Help

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