There are many reasons why a person may get behind on their taxes, and usually, what may start out as one year of non-compliance may turn into several years out of IRS tax compliance.

Common issues include:

Unfiled Tax Returns

You Didn’t File Tax Returns in Previous Years and
THAT’s Getting to be a Problem?

If you did not file your income tax return one year, the next year you no doubt wondered what to do. If you are like many people, you didn’t know what to do – so you didn’t file that year either because you thought it would draw attention to the first year you didn’t file. THAT can start a vicious cycle of back taxes.

If the IRS finds out about any income you received in those years, they will file a tax return for you called a “Substitute for Return” or “SFR.” It will say you owe more tax, interest and penalties than if you filed the return, because the IRS does not have to assume you have any deductions or exemptions, or that what you sold cost you anything to buy. It’s amazing how back tax debt can balloon if it’s the IRS figuring out what you owe. It’s better to resolve all of the missed tax returns with Best Tax Pro whose professionals know how to file back taxes, to work with you to get and organize the information you need to complete the filings.

Thousands of people miss filing tax returns in any given year because of good reasons, bad reasons or no reasons. No matter the cause, the situation can be saved and a cascading tax debt disaster averted with the right help, like Best Tax Pro. Call the professionals at Best Tax Pro now at (763) 477-4205 and they can describe to you how to file back taxes, and if you choose, give you the back taxes help that you need.

Best Tax Pro can help with personal tax returns (Forms 1040), corporate tax returns (Form 1120 & 1120-S for C and S Corps), partnership or LLC tax returns (Form 1065), Estate or Fiduciary tax returns (Form 1041) and the income tax returns of all states that require them.

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Delinquent Tax Returns

Got Delinquent Tax Returns?
File Your Back Tax Returns And Sleep Well Tonight

Looking to buy a house or some other life-changing event is usually all it takes to gently remind a person of how important it is to be in IRS compliance with filing taxes. In order to get into IRS compliance, all delinquent tax return(s) (single or multiple returns) would need to be filed in addition to developing a strategy to minimize, reduce, or avoid late filing tax penalties.

Typically, it is considered criminal when a person knows that they have not reported all of the income earned (that the IRS is generally unaware of) and fails to file a tax return to report the income. Usually, it will not appear on the IRS’ radar — unless 2 years of non-filing have passed. The path that you choose to follow depends on your specific facts and circumstances.

All too often, our clients will tell us that they thought that it wan’t that big of a deal, or they thought that they had sufficient tax credits to offset any unreported income.  Unfortunately…the IRS is not that forgiving.

That being said, in reality the IRS only pursues a very limited number of criminal cases each year.  If you like to play the odds, you can take some “comfort” in the fact that the chances are very low that you would be on the receiving end of criminal investigation–unless they know of some other egregious facts about  you–that you may not be aware of yourself!

Do yourself a favor and contact the professionals at Best Tax Pro. They’re willing to sit across the table from you, review your specific tax situation, and show you how they can help resolve your tax problem and get you on the track to getting a better night sleep. Call now. (763)477-4205.

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Back Taxes

Got Back Taxes? File Back Tax Returns And Sleep Well Tonight

IRS Identification Of Non-Filers

Every year, the IRS gets more sophisticated and improves their methods of identifying delinquent tax filers. Regardless of the cause of your back tax filing problem, you need to take this problem very seriously. The IRS is becoming very skilled at finding non-filers and back tax returns. Even if they have not found you yet, they will, and you may face very serious consequences if you continue to ignore the situation. These is an urgency to filing back tax returns and to take matters at hand before the IRS and/or state tax authorities choose to do so.

Just because the IRS has not contacted you does not mean they have missed your failure to file. Eventually, the IRS will prepare your return based on what is in the best interest of the government, usually with little or none of the deductions you are entitled to. The IRS prepares a “Substitute for Return” (SFR) for your late tax returns in the best interest of the government, resulting in the IRS overstating what taxes you owe and, consequently, what you owe in penalties and interest.

The only deductions you’ll see are standard deductions and one personal exemption. You will not get credit for deductions which you may be entitled to such as exemptions for spouses, children, mortgage interest and real estate taxes on your home, the cost basis of any stock sales, and business expenses for your self-employment income reported on a 1099-MISC, etc.

You may be tempted to ignore your unfiled income tax returns, hoping to fly below the radar and escape the IRS’s notice. That’s a risky choice. Failing to address your tax problem can result in some pretty serious consequences, including:

• Potential criminal charges
• Difficulty obtaining a job
• Civil penalties
• Wage and/or Social Security garnishment
• A “Substitute for Return” filed by the IRS
• Enforced collections actions by the IRS
• Tax liens
• Bank account levies
• You and your dependents will be ineligible for any student loans
• Difficulty obtaining credit to refinance a home or obtain any new credit

As you can see, the IRS can paralyze you financially. To avoid these consequences, it is important that you address the situation immediately.

Failing to file your tax return(s) is not a situation to take lightly and it can be regarded as a criminal offense. Letting time pass by only contributes to the effort that it will take to fix your tax problems. The IRS will not entertain any type of tax settlement or alternative to collections (such as an Offer in Compromise or installment payment plan) to resolve and settle your back taxes issues unless and until you have filed all of your legally required tax returns.

Don’t let the fear of owing the IRS prevent you from filing your back taxes – there are many options to pursue if you owe some tax. The tax professionals at Best Tax Pro have prepared thousands of returns for taxpayers. You need an expert that be on your side and will protect your interests. Get started with filing your back taxes. You have nothing to lose, but a good nights sleep. Call Best Tax Pro today at (763)477-4205 and ask for a Request a Tax Resolution Services Quote and rest easy.

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