REALITIES
OF FILING BACK TAXES LATE
This
article is a must read for those that have back
tax returns to file and liabilities that have
again surfaced due to a failure to file and the slow
but relentless pursuit by IRS and State authorities to
collect back taxes, late penalties and interest. The vast majority that
have late returns to file believe they have problems of
monumental proportion when the reality is normally far
from the figments of imagery, conjured. These
misperceptions are spawned and fueled by a collection
notice seeking to collect more State and IRS late taxes, than you likely owe.
SUBSTITUTE RETURNS
When
IRS and State databases are unable to reconcile the
income reported by banks, employers and others against
your social security number a return is filed for you
known as a substitute filed return (SFR).
State and
IRS filed back tax returns calculate taxable
income by subtracting a standard deduction and one
personal exemption from the gross income reported to
them and do not take into account business expenses, credits, deductions or other exemptions that reduce
taxes. As a consequence, the back tax bill received
is often based on inflated taxable income, exaggerated
late penalties and interest that you are not obligated
to pay.
STATUTE
OF LIMITATIONS
There
are no Statutes of Limitation associated with either
the collection or assessments of back taxes that
result from failure to file IRS returns.
A
claim for a refund must be made within three years
from the due date of the returns or two years from the
time the taxes are paid whichever, is later. Withholdings are
considered paid on the due date of the return.
If a return is not filed to claim a refund within the
period prescribed by the statute of limitations the
IRS will not issue a refund check or apply a refund to
offset a liability associated with another year. As a
result, individuals that are not filing delinquent taxes
may be
forfeiting offsets or refunds and subsequently, digging a deeper
hole for themselves.
Note:
State rules vary from state to state.
THE
REALITIES
Filing
a delinquent return almost always substantially reduces
taxable income and subsequently results in the
reduction of late penalties and interest in
proportion to the reduction in taxable income and the
result is often case closed elimination of the debt and/or refunds.
Individuals
seeking offer in compromise relief must have all back tax returns
filed to establish
the total debt before applying for relief, to do
otherwise is to solicit offer in compromise rejection.
Everyone,
and especially those that have lost the documentation
required to prepare a late return must
retrieve IRS and State income transcripts to insure must match
return input and permanent resolution of both
IRS and/or State back tax
returns.
TAX SERVICES
Our
service fees are always known in advance, all
inclusive and structured to make our services
available to everyone and we literally dare
you to compare our fees with those of
our competitors.
Our initial
"no obligation" interview will gather
enough information to analyze your specific
circumstances and provide a reasonably
accurate estimate of future expectations in the event
that you file your taxes.
OUR
PRIVACY
POLICY
Our
privacy policy
guarantees that contact will not result in future
unsolicited sales calls or correspondence in any form
and "only" contact initiated by you or
required to provide our services will occur at any
time, now or in the future.
