Have Not Filed Back Tax Returns in Years – Here is what to do, Former IRS on your Side

October 9, 2013
Written by: Fresh Start Tax

Fresh Start Tax
Have Not Filed Back Tax Returns in Years – The process is simple and worry free
We can file your back tax returns and make a settlement with the IRS at the same time.

I am a former IRS agent in teaching instructor. If you have not filed your back tax returns you are not alone. There are millions upon millions of taxpayers who failed to file their back tax returns but by not doing so taxpayers do themselves harm.
 
Some taxpayers can find themselves having:

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

 
If you have not filed your back tax returns in years there is a very specific process that you can walk through to get you back in the system worry free.
Millions of taxpayers do not file their back tax returns but at some point in time IRS will catch up with all these non-filers.
You need to find IRS before they find you to keep away from the any criminal problem the IRS may consider.
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.
If you need to file back income tax returns but you have lost your tax records, a good tax firm should easily be able to assist you in this process.
As a  former IRS Agent, while with the IRS, we were flooded with this request from scared taxpayers just wanting  to do the right thing, but not sure on just how to do it.
Here is how the process of filing your back tax returns works.
1. 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 average 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% monthly expenses.
2. If you have bank statements, what were your total deposits for the year? that maybe a start of your income.
3. Call the IRS and ask them for an income report record of all third parties that have reported to the IRS.
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.
4. Ask yourself, does this return make sense?
5.  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. 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?
If you are not sure you are required to file a return, refer to Publication 17, Your Federal Income Tax. 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 (including extensions of time to file), 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.
But, 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
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 can file all your back tax returns for the years you have not filed back tax returns and workout tax settlement if you are going to owe money.
 
Have Not Filed Back Tax Returns in Years – Here is what to do, Former IRS on your Side
 

Filed Under: Back Taxes | Tax Returns

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