Help with Unfiled, Delinquent Tax Returns – AFFORDABLE TAX COMPANY

by Fresh Start Tax | Oct 14, 2013 | Tax Help, Tax Returns

Help with Unfiled, Delinquent Tax Returns
 
If you  have unfiled or delinquent tax returns that need to be filed we can get you or your business back in the system worry free.
Contact us today and we can walk through this process worrying stress-free.
We are the affordable tax company.
If you owe Back Taxes ?
If you will wind owe back taxes as a result of unfiled, delinquent Tax Returns, FST can work out a tax settlement for you at the same time.
IRS will take a current financial statement and assess your case if you owe back taxes.
As a result of your financial statement you will either wind up in an economic tax hardship status, enter a payment agreement or IRS  will settle your case with an offer in compromise.
We can file your unfiled, delinquent tax returns and make a tax settlement with the IRS at the same time.

 
There are million of taxpayers who failed to file their back tax returns but by not doing so taxpayers do themselves harm. You can lose benefits and possible  tax refunds.
 
 Some taxpayers can find themselves having:
 

• possibility  of  criminal problems,
• losing your Social Security and Medicare benefits while others are
• losing money the IRS would be refunding to him because of withholding in tax credits.
• peace of mind.

 
The process to get your back tax returns filed with the Internal Revenue Service is very simple and if you’re reading this you’ve already taken the first step to make that happen.
 
Lost Tax Records, no problems
 
If you need to file back income tax returns but you have lost your tax records, a professional  tax firm should easily be able to assist you in this process. The process is call tax reconstruction.
It is a system used by the IRS to  reconstruct your tax return from scratch.
Being Former IRS agents,managers,and instructors  we have reconstructed hundreds of old tax returns.
 
Here is how the process of filing your back tax returns works.
a. If a taxpayer lacks income records the taxpayer should to the best of their ability reconstruct what they think their tax earnings were for each year.
They can do this simply by using a monthly averages for each of the years.
As an example, how much was one month of your rent or mortgage, your car expenses, your food, your insurance etc.
Arrive at a monthly figure and multiple it by 12. As a general rule your rent or mortgage is usually about 28% -32% monthly expenses.
b. If you have bank statements, what were your total deposits for the year? that maybe a start of your income.
The IRS agent will always add up the sum total of your bank deposits in attribute that to earn income.
c. Call the IRS and ask them for an income report record of all third parties that have reported to the IRS. Have no fear in calling the IRS and asking them for your tax records. This will not trigger any red flags.
The IRS keeps on their computer system a list of all third party sources that have reported 1099′s or W-2′s. The IRS will send this to you within a couple weeks of your request. IRS keeps this information on each taxpayer for the last seven years. Any third party who reported income to you will be listed on this income report.
d. Ask yourself, does this tax return make sense? Does the income tie into your style of living.
e.  The Internal Revenue Service will want to make sure your financial fact patterns tie together.
They want to make sure your bank statements, your tax returns, your financial statement, in your cost-of-living all have a pattern. Simply by backing up into your cost of living  one can simply find out how much income you need to pay those expenses. Make sure all of this ties together.
The IRS knows how much it costs to live in each area of the country. There are national averages  of and you can find them on our website.
The tax return must reflect your living style and conditions over the period of time in which you are filing.
It is always best to let a professional tax firm handle this situation. The professional firms know the standards and the methods used by the IRS and if you owe tax, they can probably work out a tax settlement as well.
Not sure if you were suppose to file a tax return

If you are not sure you are required to file a return, refer to Publication 17, Your Federal Income Tax. You could simply go to the internal revenue site@IRS.gov.
There are certain income thresholds in which taxpayers are not required to file a tax return.
If you are required to file a return, but you cannot pay all of the tax due on your return, FST can be able to assist you with establishing a payment agreement.
If your tax return was not filed by the due date you may be subject to the failure to file penalty, unless you have reasonable cause for your failure to file timely.
 

• You may be eligible for abatement of penalty relief.

• There is no penalty for failure to file if you are due a refund.

If you wait to file a return or otherwise claim a refund, you risk losing a refund altogether. An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances.
 

You can lose possible tax refunds if you do not file

After the expiration of the three-year window, the refund statute prevents the issuance of a refund check and the application of any credits, including overpayment of estimated or withholding taxes, to other tax years that are underpaid.
However, the statute of limitations for the IRS to assess and collect any outstanding balances does not start until a return has been filed.
In other words, there is no statute of limitations for assessing and collecting the tax if no return has been filed.
Contact us for a free initial tax consultation and we can help you through this process.
We have been in practice since 1982 in our A+ rated by the Better Business Bureau.
We are the affordable nationwide tax firm practicing in all 50 states including providing tax representation for international taxpayers.
 

Help with Unfiled, Delinquent Tax Returns – AFFORDABLE TAX COMPANY