We Can Help with Past Due Tax Returns
Past due tax returns can create stress and worry in your life. Put those unfiled tax returns behind you today. Our low-cost tax preparation fees help clients get the IRS worries behind them. The reality is that your back-tax issues will not go away on their own.
You need a proven solution to your financial situation. Call me today to begin the process of catching up on your outstanding tax filing. I have years of experience with the tax code. All it takes is 10 SECONDS to fill out our contact form. New clients are always welcome.
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Now is the best time to catch up on years of unfiled tax returns. The IRS is fighting a mountain of returns that are sitting in tractor trailers at their various offices. And their problem isn’t getting better anytime soon. As of June 30th they are struggling to get back to full staff. Admittedly they have said it could take until September, or beyond, to have all employees working.
Add to that the IRS compliance office issues. Over the past several years almost half of the returns they’ve audited went nowhere. They “resulted in no change to the tax liability of the taxpayer”. In other words, they are auditing compliant returns. This is good news all around not to fear the IRS.
Prior to the latest events in the US, the IRS had a 0.5% audit rate. The lowest rate since 2002. Then consider that only half of audits resulted in an increase in taxes owed. This means that pre-virus you had a .25% chance of being audited and paying more. Now it gets even better.
The general consensus is that the IRS will only be capable of auditing at one quarter capacity for returns older than one year. The result if you catch up on your unfiled returns, you win. The probability is only 0.0625 that prior year returns will get audited and result in an increase in tax owed. Don’t let fear of the IRS stop you from getting past due tax returns filed.
This should be your primary motivation if get caught up on back tax filing. You can get the worry off your back, get compliant and put audit fears at a minimum. Contact me today and I can help you file your past due returns now.
Q & A
Answers to your frequently asked questions from Certified Public Accountant and expert Ernest Tomkiewicz CPA.
What is an Offer in Compromise?
The Offer in Compromise is a process whereby the taxpayer provides the IRS with personal income and expense information. The IRS then determines if the taxpayer can repay all or part of the tax debt. If the taxpayer cannot repay the whole balance due, your offer is considered. You then enter into an agreement on the terms of pay back.
What is an IRS Installment Agreement?
You can apply for an installment agreement online or with a representative at the IRS. If you are not eligible for an Offer in Compromise, this is your next step. You can payback over as many as 72 months. However, it is best to payback as quickly as you can. Interest is charged during the agreement period. Bear in mind there are some minor fees to set up an agreement.
What is the Statute of Limitations on Unfiled Tax Returns?
The IRS statute of limitations on federal tax returns goes like this. Unofficially the IRS wants your last six years filed. Beyond that they are hard pressed to look back except in cases of gross understatement or fraud.
Can I Still Get Money from Unfiled Returns?
Yes. But there are some limits. When assessing income tax, the IRS can go back as far as they wish. Even though they usually stick to the six-year rule. The story with a tax refund is different. If you are owed a refund on unfiled tax returns you have about a three-year limit. The clock runs for three years after the filing date. If you are owed money on your 2019 filing year, you have until April 15th, 2023 to get it.