Unfiled Tax Returns and the IRS: How a NYC Tax Resolution Attorney Can Help
What to Do for Unfiled Tax Returns: New York City Tax Resolution Attorney Discusses
Each year millions of people fail to file their taxes. Their reasons for being unable to file can range from procrastination to fraud and anything in between. In any case, these individuals will be categorized as non-filers who will need to settle up with the IRS. The Internal Revenue Service (IRS) may be unforgiving to those who have failed to timely file their tax returns. For example, the IRS will give closer attention and scrutiny to delinquent tax returns, increasing the potential for an audit. Those who have fallen behind on filing their taxes are often concerned of the consequences of their actions, but unsure of how to remedy the situation. If you have unfiled tax returns, contact our New York City tax resolution attorney to learn how you can get up to date with your tax returns and the IRS.
Getting current with the IRS tends to be a two step process. First, you will need to prepare and file your taxes. Second, depending on the situation, you may be able to negotiate with the IRS to determine payment plans or lowered fees.
Preparations and Paperwork
If you have unfiled tax returns, your goal should be to become current and compliant with the IRS. Here, becoming a current a compliant taxpayer means that you have filed tax returns for the previous six years. Accordingly, the first step in your tax resolution process should be to prepare paperwork from the past six years. During this time it will be important to gather any records you have for any years that were not already filed. For example, you may find old 1099 or W2 forms that you received from work.
If you are unable to locate all of the necessary paperwork, you will still be able to attain an IRS transcript for your records. This transcript will be a list of each and every 1099 and W2 that you were sent. At that point, you will be able to easily use this list with your own records, accounting for what may be missing. Although the IRS transcript will be comprehensive, it may not list all of your income. In that case, you will need to make your best good faith effort to identify any missing income so that it can be included on your tax return.
Negotiation Process with the IRS
The IRS will oftentimes negotiate payment plans for those who are unable to pay their balance outright. Before entering into negotiations, or even filing the paperwork, it is important to undergo a financial review to determine what amount, if any, you will be able to pay. After reviewing your total income, expenses, and debts, you may find that you qualify for financial hardship assistance or an offer in compromise.
Negotiations with the IRS may be complex and intimidating to enter into alone. Our New York City tax resolution attorneys will walk with you through every step of the process, ensuring that you have every potential remedy available to you.
Consequences of Not Filing
Many individuals will find that their tax problems can be easily resolved by voluntarily contacting the IRS to work together to find a solution. However, there are several potential consequences that will result from not filing your taxes. In some cases, the IRS will file a tax return for you, called a “Substitute for Return.” These Substitutes for Return are oftentimes wrong, resulting in the IRS charging you for your income without allowing for exemptions or deductions. In other cases, those who refuse to file their tax returns may have their wages garnished to pay their debts or even worse, face prosecution.
Did You Fail to File Your Tax Return? Call Our New York City Tax Resolution Attorney Today!
There is a lot that goes into tax resolution and it can be a complicated maze with many pitfalls. Call our experienced attorneys at SAMUEL & STEIN today to learn how we can help you successfully navigate this matrix of tax laws and achieve financial freedom by dialing (646) 480-2149 or use the convenient “Evaluate Now” box on our webpage. Together we can help answer your questions and protect your rights.