by Fresh Start Tax | Apr 25, 2014 | Tax Help
Taxpayers who have not filed back tax returns are sometimes in a quandary of how many back years they should they file to satisfy the Internal Revenue Service.
The IRS has set up a policy statement dealing with the issue of back tax returns and how many will fulfill the requirements to satisfy the Internal Revenue Service.
The IRS Policy Statement 5-133 regarding the filing of multiple years of back tax returns.
All taxpayers failing to file tax returns due 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 by the Internal Revenue Service.
If indications of willfulness or fraud exist
If indications of willfulness or fraud exist, the special procedures for handling such returns must be followed.
Where it is determined by the IRS 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.
Some, not all of these factors to be taken into account include:
1. Prior history of noncompliance,
2. Existence of income from illegal sources,
3. Effect upon voluntary compliance, anticipated revenue, and
4. 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.
Not more than six (6) years.
Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years.
Enforcement beyond such period will not be undertaken without prior managerial approval.
This is rare that a manager overturns this policy.
Also, if delinquency procedures are not to be enforced for the full six year period of delinquency, prior managerial approval must be secured.
IRS Collection Procedures
Being a former IRS revenue officer the IRS attempts to collect these back taxes from non-filers just the way they do any tax delinquent.
They do not go out of the way to punish or hurt the taxpayer because of the multiple years of non filing.
It should be known that IRS just wants to have the individual and taxpayers back in the system.
If you need help filing back taxes returns and working out a tax settlement call us today and speak directly to former IRS agents.
by Fresh Start Tax | Apr 25, 2014 | Tax Help
Amended Returns Tax Returns
If you discover an error after your return has been filed, you may need to amend your return.
The IRS may correct errors in math on a return and may accept returns with certain forms or schedules left out.
You should file an amended return if there is a change in your filing status, income, deductions, or credits.
Also, if the Form 8938 (PDF), Statement of Specified Foreign Financial Assets, applies to you, the form must be filed with an annual return or an amended return.
See When and How To File in the Form 8938 Instructions (PDF).
Use Form 1040X
Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF).
If you owe additional tax for a tax year for which the due date for filing the return has not passed, file Form 1040X and pay the tax by the due date for that year (without regard to any extension of time to file) to avoid penalties and interest.
If the due date falls on a Saturday, Sunday, or legal holiday, filing the form and paying the tax will be timely if filed or paid the next business day.
To determine where you should file Form 1040X, see Where To File in the Form 1040X Instructions (PDF).or call us today.
File a separate Form 1040X for each year you are amending.
Mail each form in a separate envelope.
Be sure to enter the year of the return you are amending at the top of Form 1040X.
The form has three columns. Column A shows original or adjusted figures from the original return.
- Column C shows the corrected figures.
- The difference between Columns A and C is shown in Column B.
- There is an area on the back of the form to explain the specific changes being made and the reason for each change. Attach any forms or schedules that are affected by the change.
Attach copies of any forms or schedules that are being changed as a result of the amendment, including any Form(s) W-2 received after the original return was filed.
Tax forms can be obtained by calling 800-829-3676 or visiting www.irs.gov.
An amended tax return cannot be filed electronically under the e-file system.
Normal processing time for Forms 1040X is up to 12 weeks from the IRS receipt date.
Please note:
Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.
Check the status of your Form 1040X
You can check the status of your Form 1040X (PDF), Amended U.S. Individual Income Tax Return, using the “Where’s My Amended Return?” (WMAR) online tool or the toll-free telephone number 866-464-2050 three weeks after you file your amended return. Both tools are available in English and Spanish and track the status of amended returns for the current year and up to three prior years.
You must enter your taxpayer identification number, usually your social security number, date of birth, and ZIP code in either application to prove your identity. Once authenticated, you can view the status of your amended return across three processing stages–Received, Adjusted and Completed.
by Fresh Start Tax | Apr 25, 2014 | Tax Help
With 131 Million Returns Filed, Millions of Amended Returns Expected
As of April 18, almost 46 million returns were e-filed from home computers, more than the total from home computers for all of 2013.
The IRS has received more than 131 million returns, of which 88 percent were e-filed.
The IRS also projects that almost 5 million taxpayers will amend their returns by filing Form 1040X during 2014.
Taxpayers who need to amend their returns should file this form only after filing the original return.
Generally, for a credit or refund, taxpayers must file Form 1040X within 3 years, including extensions, after the date they filed their original return or within 2 years after the date they paid the tax, whichever is later.
For most people, this means that returns for tax-year 2011 or later can still be amended.
This year, many same-sex couples may want to consider filing amended returns.
A same sex couple, legally married in a state or foreign country that recognizes their marriage, is now considered married for tax purposes.
This is true regardless of whether or not the couple lives in a jurisdiction that recognizes same-sex marriage.
For returns originally filed before Sept. 16, 2013, legally married same sex couples have the option of filing amended return to change their filing status to married filing separately or married filing jointly.
But they are not required to change their filing status on a prior return, even if they amend that return for another reason.
In either case, their amended return must be consistent with the filing status they have chosen.
As all amended returns must be filed on paper, allow up to 12 weeks for Form 1040X to be processed. Starting 3 weeks after filing their amended returns, taxpayers can use the “Where’s My Amended Tax Return?” tool on IRS.gov to check the status.
by Fresh Start Tax | Apr 25, 2014 | Tax Help
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How fast can I get a tax levy release?
It is possible to get an IRS tax levy release with one phone call to IRS.
Before you make a phone call you must have prepared and in your hand and ready to fax a fully documented 433F, IRS financial statement.
With that in hand, the IRS agent on the other end of the phone will ask you to forward the documentation, they will review the information and provide an exit strategy for you and release the IRS bank or wage levy.
You will also have to make sure your tax returns are filed and up-to-date.
How can I get a back tax settlement?
You can get a back tax settlement by filing what is known as an offer in compromise. Before you file an offer in compromise you should walk through the pre-qualifier tool that you can find on our website.
When should I file my back tax returns?
You should file all back tax returns as soon as possible.
Most taxpayers do not file their back tax returns because they have incomplete tax records or panic or fear sets in because of the multiple years of not filing.
IRS wants you back in the system. So whether you have few or little records we can complete and prepare all your back tax returns and work out a tax settlement at the same time.
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by Fresh Start Tax | Apr 24, 2014 | Tax Help
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As a general rule we can get a tax levies (bank and wages ) released within 24 hours of receiving a fully documented IRS financial statement which is on 433-F.
You should also be advised that the get an IRS levy release you will have to file all back tax returns.
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How far back can the IRS go to audit my return?
Generally, the IRS can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified.
Generally, if a substantial error is identified, the IRS will not go back more than the last six years.
The IRS tries to audit tax returns as soon as possible after they are filed.
Accordingly most audits will be of returns filed within the last two years.
FAQ for IRS Tax audits
If an audit is not resolved, you may be asked to extend the statute of limitations for assessment of your tax return.
The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later.
There is also a statute of limitations for making refunds.
Extending the statute will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit.
It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date.
However, if you do not agree, the auditor will be forced to make a determination based upon the information provided.
IRS Help – Tax Levy, Tax Audit, Tax Settlement, Back Tax Returns – Affordable – Hypoluxo, Indiantown, Tequesta, Malabar – Tax Attorney
by Fresh Start Tax | Apr 23, 2014 | Tax Help
If you are having problems with the Internal Revenue Service you are not alone.
Some quick tax facts
- the IRS sends out 1.8 billion bank in wage levies every year,
- the IRS collects over $30 billion a year on enforced collections,
- the Internal Revenue Service sends out close to 900,000 federal tax levies every year
- the Internal Revenue Service sends out 1.4 million audit notices every year,
- the IRS audits 359,000 taxpayers by office or field audits every year,
- the IRS claims that 16 million taxpayers do not file annual tax returns,
- the IRS audits less than 1% of all taxpayers
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IRS Taxes Help, Back Tax Returns, Debt Settlement, Tax Levy, Tax Audits, Green Cove Springs, Fruitland Park, High Spring, Holly Hill, 1-866-700-1040
