Previous Years Non-Filed tax returns

Previous Years Non-Filed U.S. Tax Returns

The IRS is Hunting for Non-filers

Using its highly effective computerized Information Returns Program (IRP), the Internal Revenue Service searches for non-filers by matching Forms W-2 and 1099 income returns from payers (the company you worked for or contracted with, your bank, etc.) with your income tax returns you filed.  If the IRP search fails to find a return, the IRS initiates a Taxpayer Delinquency Investigation (TDI) and will eventually file a Substitute for Return (SFR) on your behalf, which will leave you with the highest possible taxable income (i.e. lowest standard deduction, no itemized expenses, no expenses on your 1099-MISC. income, etc.).   The IRS can be years behind catching this so don't ever think you are are home free, once they catch you, and they will, you will be hit with late filing and penalties on top of compounded daily interest.   

Non-Filing May Be a Crime

If someone from the IRS questions you by phone if you filed income tax returns for all years and you answer, "Yes, the IRS must have lost them," you will have lied to the IRS, a crime punishable by up to vie years in prison. But if you answer "no," you may have confessed to the crime of failure to file a tax return. The appropriate response is to say you will get back to them after you check your records or speak with your tax adviser. These words will save you! You are welcome.  Now contact me to see what we can do. 

It's Better to File Before the IRS Contacts You

It's never too late to file your past due returns to get back into compliance.  The IRS has a policy of not criminally prosecuting taxpayers who file their own returns prior to them contacting you (IR-92-114).  The IRS is also more lenient on collecting past due amounts from voluntary filers than from those they catch. When you reach out to the IRS your case will usually be assigned to the IRS campus which is less likely to put pressure on you than if the IRS has sought you out, where your local IRS office will have a Revenue Officer applying more pressure to collect on back due taxes.

What Will Happen When You File Late

It is possible the IRS may impose civil and/or criminal penalties in addition to denying any refunds that may due to you (there is a Statute of Limitations on claiming the refund within 3 years of the return due date or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 3 years from the time the tax was paid-26 U.S. Code §6511).  The IRS will hold all income tax refunds in cases where their records show that one or more returns are past due.  They will keep the funds until they receive the return or an acceptable reason for not filing a past due return. 

Filing a Return When You Can't Pay What You Owe

If you owe taxes but don't have the money to pay the full amount, file a return and send what you can.  You can incur up to a 25% fine for the first five months you're late.  Even a partial payment will cut down the penalty and interest owed. 

I can prepare any past tax returns you have and can represent you before the IRS and state if you owe.  Please contact me by email or fill out the form to your right for a quote.

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Available for all taxpayers in every state and all Expatriates living abroad. 

☎ CONTACT NICHOLAS HARTNEY, EA

nick@genesistaxconsultants.com
and tell me about your situation. 

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