Friday, September 26, 2008

Unfiled Tax Returns

Are you “unfiled” with the IRS? If so, then you may have a problem. The IRS laws classify an unfiled tax return a misdemeanor. An unfiled taxpayer may be sentenced to up to one year in prison for each year they are unfiled. Needless to say unfiled tax returns can be a serious problem. Consider the case of actor Wesley Snipes and what happened to him for unfiled tax returns.

Filing unfiled returns will get a delinquent taxpayer back in good standing with the IRS. However, when filing you want to make sure the returns are filed correctly. If there are several years that need filing a taxpayer should seriously enlisting the services of a professional tax preparer. You want the returns filled out correctly and accurately.

Filling out the returns correctly depends on the preparer’s access to tax preparation software that matches up with the year(s) being prepared. Tax laws change from year to year and it is very important to select a tax preparer that had the correct tax preparation software. Failure in this area can trigger an audit!

Filling out the tax returns accurately depends on the diligence of the tax preparer to conduct the proper research to get all the facts necessary to completing the returns. This research should include 1) working directly with the taxpayer to get all expenses that can be written off and to 2) interview the IRS for the purpose of analyzing the taxpayer’s IRS transcript and to obtain a copy of the IRS Income and Wage report to ascertain exactly what income records the IRS has on the taxpayer.

All combined these factors should enable a tax preparer to correctly and accurately prepare the taxpayers outstanding returns. By making sure the returns are filled out according to the tax laws pertaining to each year requiring filing and matching up the proper income obtained from the Income and Wage report the taxpayer can be confident that they are virtually “audit proof” with their returns.

1 comment:

Joe Mastriano, CPA said...

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Tax Problem