Unfiled Tax Returns

unfiled taxesIf you have unfiled tax returns, we can help!  We help clients catch up their overdue tax returns in the  Knightdale, Wendell, Zebulon and Raleigh NC area. Whether you missed filing one year, three years, five years or more, we can help.  Call (919) 266-3417 or email to get started on resolving your unfiled back taxes.

One of the most important parts of resolving unfiled tax returns is assembling the information.  If you haven’t filed tax returns for a few years it’s likely that some information is incomplete or missing.  We are authorized to use IRS “e-Services” to access W-2 and other transcript information.   We can provide bookkeeping services to help you if you have a business.

Here a few items we will attempt to discover with IRS “e-Services”:

  1. How many tax returns have not been filed.
  2. If you are currently in a collection process with the IRS.
  3. How much you owe the IRS.
  4. The tax years you owe the IRS.
  5. Has the IRS has filed any tax returns for you. These are called SFR’s (substitute for return). It’s almost never a good idea to let the IRS or NC file a return based just on information they have in their system.

How many years back do I have to file Unfiled Tax Returns?

The short answer is, it depends.  As a general rule there is a ten-year statute of limitations on IRS collections.  In the case of fraudulent or unfiled tax returns there is no statute of limitation.  In some situations you may only need to file six years.

Consequences of having Unfiled Tax Returns:

  • It’s illegal. First, and perhaps most importantly, not filing taxes is a crime and it is possible to go to jail as a result. Fortunately, this is not common and is typically the result of an individual conducting themselves in an uncooperative manner with the IRS.
  • Penalties and interest. If you have unfiled tax returns, you can expect to pay penalty and interest on the balance due for each unfiled tax year.
  • Lost refunds. Refunds on unfiled tax returns older than three years are lost.
  • Difficult to get a mortgage or refinance a mortgage.
  • Difficult to get health insurance through healthcare.gov.
  • More stress and worry about getting caught.
  • May have difficulty getting a passport.

Settle your IRS debt for less than full amount?

Here is what the Federal Trade Commission says about Tax Relief Companies.

“Tax relief companies use the radio, television and the internet to advertise help for taxpayers in distress. If you pay them an upfront fee, which can be thousands of dollars, these companies claim they can reduce or even eliminate your tax debts and stop back tax collection by applying for legitimate IRS hardship programs. The truth is that most taxpayers don’t qualify for the programs these fraudsters hawk, their companies don’t settle the tax debt, and in many cases don’t even send the necessary paperwork to the IRS requesting participation in the programs that were mentioned. Adding insult to injury, some of these companies don’t provide refunds, and leave people even further in debt.”

“Some taxpayers who filed complaints with the Federal Trade Commission (FTC) reported that, after signing up with some of these companies and paying thousands of dollars in upfront fees, the companies took even more of their money by making unauthorized charges to their credit cards or withdrawals from their bank account.” Click on the link to see the complete article about tax relief companies.

https://www.consumer.ftc.gov/articles/0137-tax-relief-companies

Before the IRS or NCDOR will even consider any adjustment, you must have all tax returns filed!    Once the returns have been completed you are in a better position to understand if you qualify for any of the tax relief programs and how to proceed.

Get Help with Unfiled Tax Returns.

Call (919) 266-3417 or email me at rhines@hinescpa.com to get started on resolving your unfiled back taxes.

2018-07-27T04:21:28+00:00