Before Doing All Those Back Tax Returns - Read This!!!!


Before you do all those back tax returns there are a few things to consider. There are two important issues that can cost you or save you a lot of money. One is which returns have to be filed and the other is the sequence in which they are filed. Both of these strategy issues can mean a lot of money to you.

Do You Have To File All Those Years of Returns?

When it comes to filing back tax returns there are a few things you need to know. First, is you may not need to file all those years of returns. It depends on your situation but don't file all 10 or 20 years of returns when you probably don't need to file all of those. Instead contact me and let's talk about your situation and probably save you both time and money.

Does It Matter What Sequence You File Those Returns In?

The other thing you need to know before filing all those back tax returns is it may be extremely important in what sequence you file the tax returns. If you qualify for an Offer in Compromise it may be extremely important which tax returns you file first, the state or the federal. Again this may cost you money if you file without a strategy. Before you file all those returns contact me to schedule an appointment to discuss your situation and start working on a strategy to save you money. 

There is strategy involved with filing back tax returns and knowing what strategy to pursue is worth a lot of money to you. Perhaps a lot more than you would pay me to help you deal with your situation.  Taking care of back tax returns and taxes can be stressful. Don't go it alone. Get the help of an experienced tax professional who understands the strategies involved. You will be glad you contacted me

Contact me today and let's get started with developing a strategy to address your back taxes and keep you from paying more than you have to. I help people get caught up with filing tax returns and help them make arrangements with the IRS to pay those taxes. So contact me today using my email address below to contact me about arranging an appointment for a consultation and let's get going.

The CPA Superhero
jeff.jhtaxes@gmail.com




Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Impact of Non-Filing and Non-Payment



Impact of Non-Filing and Non-Payment 

Non-Filing and Non-Payment are growing issues that the IRS is dedicating more resources to. You may not have filed some of your tax returns and or have unpaid taxes. What do you need to know?


First, there is a statue of limitations for the IRS to collect the taxes that you owe. That statute runs for 10 years from the date you file and the tax is assessed. So if you fail to file a tax return that statute for that tax year never begins to run and so the IRS can come after the taxes at any time. There is also no time limit for the IRS to collect if you file a fraudulent return. There is a lot more to this issue, but I have simplified to make the point that it is in your interest to file your returns and get that 10 year collection statute running. 


IRS Notices

It also helps you to be proactive and file before the IRS starts sending you notices. All kinds of clocks start running against you when the IRS starts sending you notices. Your rights to appeal an IRS decision or your right to go to tax court are limited in their duration and those time periods start running when the IRS sends you certain notices. You also get closer to the IRS sending a notice of intent to levy or file a lien on your property. Many taxpayers who have not filed wait until they get the intent to levy or file a lien notices. Others wait until their accounts have been frozen by the IRS to call for help. That is really a worse case scenario and a difficult one to deal with quickly. So act before the IRS even sends the first notice or if you have started receiving notices already act now

Penalties and Interest

In the seminar they mentioned it is also important to file because it can limit penalties and interest. Click here to go to IRS.gov post on penalties and interest

Options to Negotiate Payment Arrangements

One of the more important reasons for filing is so that you can apply for an Installment Agreement or an Offer-in-Compromise. In order take advantage of these provisions you must be in compliance. That means you must be current with filing your returns and making your tax payments to qualify for one of these relief programs. When helping clients negotiate payments with the IRS this is always the first thing we need to deal with, getting the client into compliance

Substitute For Return (SFR)

If you do not file a return, at some point the IRS will use the information it has received to file a Substitute For Return (SFR). When this happens there are several things that you won't like. One is there will not be credits available to you for this return. Second, your SFR will be filed with a filing status of Single or Married Filing Separately so you would lose the benefit of favorable statuses like Married Filing Joint, or Head of Household. Also, the ten year statute mentioned above does not begin to run. Any subsequent returns filed that show you are due a refund, those refunds will be held due to the unfiled return. Finally once a SFR has been filed the taxes from this tax year can never be included in a bankruptcy filing

The SFRs I have seen have been for taxpayers who came in because they could believe they owed that much money. One situation is with self-employment income. The SFR is calculated without regard to any expenses because the IRS only gets notice of your self-employment income. The other scenario I have seen is with stock sales reported to the IRS. I have seen these where the IRS did not have the basis reported so that the SFR showed the tax calculated just on the proceeds and not taking into account what you paid for the stock. In both of these scenarios I have helped taxpayers greatly reduce the amount of tax that they owed.

Act Now

There are many reasons you need to file a tax return. These are a few of them. Additionally many rushed to file tax returns this year in order to get a stimulus check. So don't waste time. Act now to get these returns filed. The IRS will pursue collecting taxes, penalties, and interest. Also, it is a legal requirement to file tax returns so this can become a criminal issue. Often times people have had some tragic event that has kept them from filing or they have just procrastinated and now the anxiety has built up. Stop carrying that weight, file those tax returns, and move on with your life. I help taxpayers to both file back tax returns and negotiate payment arrangements with the IRS. If you are afraid of what you might owe, then you first need to file your returns and second know that you may have options to help you satisfy your tax debts like an Offer-In-Compromise or an Installment Agreement.

Contact me today and let's get started in alleviating the weight on your shoulders from your tax burden. I help people get caught up with filing tax returns and help them make arrangements with the IRS to pay those taxes. So contact me today using my email address below to arrange an appointment for a consultation and let's get going.



The CPA Superhero
jeff.jhtaxes@gmail.com
2




Posts:




Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

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