Delinquent & Unfiled Tax Returns
If you have unfiled tax returns, schedule an appointment TODAY!
The Internal Revenue Service (“IRS”) allows taxpayers to file late or unfiled tax returns. If the taxpayer does not voluntarily file an unfiled tax return, the IRS will file a substitute return. A substitute return may not accurately reflect the amount of the tax liability, since the substitute return does not include all exemptions and expenses that the taxpayer may be entitled. Even in cases where the IRS has filed a substitute return, it is suggested that the taxpayer file his own return to claim any additional items.
Not filing a tax return when you actually owe taxes is far worst than filing a tax return and not being able to pay the tax amount owed. If you file a tax return but cannot pay, the IRS has payment solutions to help you pay the tax amount owed. If you do not file a tax return it is considered a crime and you can be punished for it. So even if you do not have a penny to your name, it is still a great idea to file the return. Not filing a tax return can result in fine up to a $25,000 and a 1 year prison sentence for each unfiled tax year. Typically, the IRS won't send people to jail for unfiled returns because if they actually sent every person to jail that had an unfiled return, they would only be able to fit about 1% of those people in the jails. When they do send people to jail it is mainly to set an example and to scare people into filing their returns, such as Wesley Snipes.
It is worth noting that in cases where a return was not filed, the tax law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within the three years, the money becomes the property of the U.S. Treasury. After the expiration of the three year refund statute, not only does the law prevent the issuance of a refund check to the taxpayer, but it also prevents the application of any credits, including over-payments of estimated or withholding taxes, to other tax years that are underpaid. Also, there is no statute of limitations for assessing and collecting unpaid taxes if no return has been filed.
We will prepare delinquent or unfiled returns and coordinate the filing of the prepared return. The preparation and filing of the return may be used as part of any IRS negotiation to resolve your tax matter.
Taxpayers with one or several delinquent or unfiled tax returns should contact us immediately at 954.591.8290 and get the returns filed. Ask us about payment options if you are unable to pay your unpaid tax liability in full.
K.R. Hoffman & Co., LLC, counsels Entrepreneurs, Professionals and Select Individuals in taking control of their taxes, and businesses. Discover how we can help you overcome your tax and business challenges. For more information or to become a client, call Kenneth Hoffman at (954) 591-8290 Monday - Friday from 8:30 a.m. to 1:00 p.m. for a no cost consultation, or drop me a note.
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