You want to come clean with your taxes, what do you do?

June 22, 2010
Written by: steve

We run across so many taxpayers that want to come clean and they just do not know what to do. Some taxpayers have not filed for 20 years, some never. While each situation is completely different, Nina Olsen, the IRS Taxpayers Advocate
explains the next steps process on her comments from Marketplace March 28th, 2010
Her comments:
NINA OLSON:” The IRS has a policy where if the taxpayer comes in voluntarily, and we have not found that tax payer first — we really ask the taxpayer to go back and file six years. Then, the IRS is able to provide — not necessarily all six years worth of data, but any time there’s a W-2 or 1099 going back about five years — we can provide that information.
So, six years — not the full 20. And the IRS may already have the info on file. Olson also said if they hadn’t been caught by now, it’s probably because the government actually owed them for some of those years.
And if it turns out he’s on the hook, the IRS has payment plans to help ease the pain a little.”
For clients of Fresh Start Tax, the first thing  we do is send a power of attorney in on all our clients.We deal with the IRS not our clients. We request the last 6 six years of income records from the IRS on the practitioners hot line services. The  IRS has on file all income reports and they are readily available for our office.We request any records of income and expenses that the taxpayer may have in their possession. We discuss each years tax return with the client and file the tax return. We make sure the tax returns make sense that is the cost of living, the bank statements , a financial statement  and the tax return have a common cord of sensibility.
The last part of the process is to find out if there is a tax due, how will it be paid in full. Many times we file offers in compromise and settle the debt for the clients. Fresh Start Tax and its staff has been preparing tax returns for taxpayer like this well over 27 years. We can help you today. 1-866-700-1040

Filed Under: IRS Tax Advice | Tax News
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