Don't Stress - Take It One Step At a Time

There are millions of Americans who for different reasons miss filing their taxes on the due date. And then the months roll into years and before you know it, you have not filed past due returns for 2 or 3 years.

Taxpayers who have experience, divorce, loss of life of a close family member or friend, loss of job, severe accidents, illness, depression, serious lifestyle change or loss of business may have problems staying in compliance with the IRS's filing dates.

Taxpayers under the doctor's care and taking prescribed medicine also fall into the above group. Either way, keep records of your medical visits - this may help you to abate penalties.

Often times these taxpayers fall into a fog and all the letters that the IRS sends means nothing, until the day they walk into the bank and find that the IRS has levied their bank account.

There are provisions for you. First, you must file ALL past due returns. If there was an illness or a death involved, you can request that your penalties be abated. (eliminated)

Why You Want a Tax Professional to Complete Your Back Taxes

We can find out exactly what the IRS knows about each tax year in question without having to admit or commit to anything.

If the IRS has filed a substitute return for you, (that's a return that the IRS files for you to determine how much you owe "them" the only way you can change the amount that you owe is by filing your own past due return.

We contact the IRS for you, obtain the income documentation that the IRS used to prepare your substitute returns. We completed your tax returns, including your dependents, if any, and other legal deductions that you are entitled to. This is the only way to lower your tax liability if the IRS has filed a substitute return for you.

A good tax service will provide an audit alert summary of your past due returns, based upon returns filed by millions of other tax payers in your same tax bracket.

Never, Ever . . . .

Never lie to the IRS about your assets or anything else. It is a federal crime to lie to a federal agent.

When we prepare your back taxes, based upon the IRS's documentation of your income, you don't have to speak with the IRS directly. However, if you have already filed your taxes and there is a tax problem, you will need to return to your original tax service or locate a Tax Attorney.

In any telephone conversation that you have with the IRS, when there is a balance due, they will ask you where your work, and where do you bank at? If you don't speak to them; then you may not have to answer these two questions. (It's not like they can't find out)

What Happens When You Don't File Your Return

The IRS will file a substitute return for you. But this return is based on information the IRS has from your employers, banks and etc. When the IRS prepares a substitute return, they do NOT include additional exemptions or any expenses that you may be entitled to. Thus you end up owing a lot more then if you had completed your own past due return.

Once your past due return is filed, the IRS will adjust your tax bill.

Not filling back taxes is costing you money each day. Interest is compounded daily

IRS Tax Collections

According to the IRS Statistics, close to 3 million taxpayers, in 2004, had gross assets of $1.5 million or more. At the same time the IRS levied over 3.5 million individual bank accounts in 2006.

Bank levies is one of the IRS's most popular ways to collect unpaid tax liabilities. After the IRS sends you a number of communications, and there is no response or no payments from the tax payer, then bank levy is the next step.

A Notice of Levy is sent to you (using certified mail) and to your bank. The IRS Levy requires the bank to freeze all the money in your accounts. This includes joint accounts, or any accounts with your social security number on it. The accounts are frozen for 21 days and you can't get use your accounts during this period of time.

During this 21 day period, you can negotiate with the IRS.

It is during this 21 day period that you can contact a tax attorney. If you don't have the finances to pay your tax bill or a tax attorney, you can call the IRS directly and ask for an Installment Agreement.

What if you file your return and the IRS Owes You?

If you file your back taxes within the 3 year window, of when they were due, the IRS will mail you a refund check - unless you owe for previous years and then your refund check would be applied to your tax liability. (If you owe child support - contact your attorney)

If you are a single parent with one or more children, and your income is low to medium, you may be entitled to a refund.

If You Are Caught Cheating

If you are caught in a lie, by the IRS, they may refer your case to the IRS's criminal investigation division (CID)

When filing past due returns, tax payers often use the best guest estimate because records have been lost or they don't have the receipts.

If you are audited, you can show proof with an image or a statement of accounts - It depends on the auditor if he/she will accept your explanation. When a professional Tax Preparer prepares your past due returns, he/she can use the professional software to check for audit alerts.

Offer in Compromise

If your earning are low and your assets are none to extremely low, you may qualify for an OIC (Offer in Compromise) This is where you pay the IRS, pennies on the dollar. You will need to contact a Tax Attorney to complete your Offer in Compromise.

It is important to have filed ALL of your taxes in order qualify for an Offer in Compromise. We can help you with this task, and the Attorney fees may not be as high.