CRIMINAL
CODES
The
following criminal statutes are available but
generally not used except in the most egregious
cases. So, while it is possible it is not likely
that you will end up in jail unless you are involved
in some tax scam.
I.R.C.§
7203 provides authority for the
government to charge an individual with a misdemeanor
when there is a failure to file or failure
to pay taxes.
I.R.C.
§ 7201 allows the government to prosecute an
individual for felony evasion when non-filing or the
omission of income is motivated by an intent to
conceal and avoid assessment or payment of taxes.
Filing
back tax returns almost always substantially reduces
the amount of income used to determine your liability and subsequently results in the
reduction of taxes, penalties and interest in
proportion to the reduction of income subject to taxes,
if any after refunds and
credits.
Internal
Revenue Code (I.R.C.) § 6020(b) provides the
authority for the IRS to prepare
substitute tax returns, assess back taxes and begin
the collection process.
Income
Tax Services
BACK
TAXES, RETURNS AND ABATEMENTS
STATUTES
OF LIMITATION ASSESSMENTS COLLECTIONS REFUNDS AND
CREDITS
When
State and IRS databases are unable to match the
income reported by banks, employers and others against
your social security number, substitute returns are filed for you.
This
article is a must read for those that have
un-filed back tax returns. The vast majority that
have failed to file returns 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 back taxes,
delinquent penalties and interest, than you likely owe.
REFUNDS
AND CREDITS
A claim for a refund must be made within three
years from the due date of the return or two years from
the time the taxes are paid back whichever, is later.
Withholdings from wages and other sources 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 the liability
of another year, child support or student loans.
As a result, an individual with back taxes may be
accumulating debt.
States generally comply with this standard
PENALTIES
AND INTEREST
The
IRS generally bases penalties and interest on the amount
owed so if you do owe the penalties and interest for all
intents and purposes this becomes a mute point.
The States can be extremely savage with the imposition
of penalties and
interest.
Note:
State Statute of Limitation rules are dependant on
location.
Your
taxable income on a substitute return is determined by subtracting a standard deduction and one
personal exemption from the gross income reported by employers, banks and others and
is reduced by the amount of income tax withholding but
is not
reduced by business expenses, credits, deductions or other exemptions that
you are entitled to claim. As a consequence, the
alleged back taxes, penalties and interest are based on
income that is not even subject to taxes.
Professional
help
with gathering lost documents, preparing and filing
back tax returns
4.8
Billion in Unclaimed Refunds and credits from un-filed
taxes. Sole purpose of this page is to identify those
that have refunds and credits.
ASSESSMENTS
There
is no Statute of Limitations (time limit) that prevents
the IRS from assessing or collecting taxes associated with
un-filed returns. States follow this parameter.
COLLECTIONS
The 10 year statute of limitations
for collection does not begin to toll until a return is filed
and the taxes are assessed. States may have no statutes
of limitation for collection or very long ones. So this
can become a life time of constant hassle.
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