Friday, April 3, 2009

Unfiled Tax Returns

Do you have unfiled tax returns? If so then you need to get them filed for several reasons. One of the biggest reasons is because it is a criminal offense to not file. One of the other reasons is that the IRS may file a tax return for you if you don’t file. On this blog you will find out what will happen if the IRS files a return for you.

So you have not filed a return in several years and then all of a sudden you get a bill in the mail from the IRS for $47,835.14! After you recover from passing out you scramble to find out what has happened and what to do. Here’s what has happened. The IRS has a record of all the income you have received for each year you have received it. They have now taken this income from a few, not all, but a few years and listed it on an income tax return. The IRS has given you the minimum deductions, zero exemptions and has filed you as single which translates to the highest amount of tax.

Then they add penalties and interest and calculate the total amount due based on when the tax return was due then they send you a bill. If the bill is not paid then they seek to collect. If no action is taken on your behalf they go after your income by sending a letter to your employer and to your bank demanding money. At this point you are in very serious trouble.

But wait, there is help! If this happens the best thing to do is file all returns immediately! Get the returns filed the way they should have been filed initially. This should cause the amount you owe to go down. Once all of your returns are filed you’re good to go! If you owe money to the IRS after filing the returns then you need to work out a plan of resolution. A tax professional can help you with this. Whatever you do take action and don’t get behind the eight ball! Be proactive!

2 comments:

elanorgardner said...

I am working on helping someone in this situation. A levy has already hit his bank account, but not his paycheck. He is afraid filing will just make them come after his paycheck. Also, where do we file? The normal address? Thanks!

Grayson said...

Well,

Many people do not file their taxes for a variety of reasons, including lack of records, fear of owing the liability, because they forgot to do it or they do not have the ability to pay. Taxpayers often do not know what to do about their unfiled tax returns. Documents like W-2s or 1099s or expense records are easily misplaced, especially when the years begin to pile up. As a result, the past due returns are not filed.

Organize all your documents together and ask for missing copies from the IRS. A tax professional can do your tax return. They will even deal with the IRS in your stead. Plan for the future. Review your tax position with a tax professional and plan strategies that will work to reduce your taxes and help you reach your financial goals.