If you were legally required to file taxes during any given year, and you failed to file, you have created a crime. Will the IRS put you in jail? Probably not, however, there are exceptions to this. The best thing to do as quickly as possible is to make every effort to file your unfilled tax returns as soon as possible.
There are a few precautions you may want to take to ensure that your dealings with the IRS will be harmonious.
1. You have to know that the IRS may have filed a "Substitute Return" for you. Meaning they have filed a legal tax return based on information received from previous employers, banks or lenders. This "Substitute Return" can be used to levy your bank account(s) and to garnish your wages.
It is best to limit your bank account balances until you can file your unfiled taxes and have the IRS update your tax records.
2. If the IRS has already sent you an Intent to Levy Letter and contacted your Employer, the only way to stop the wage garnishment, or at least have it reduced, is to file the unflled tax returns as soon as possible.
You would want your tax professional, or you can call the IRS and tell them exactly when the returns will be filed and ask that they delay the wage garnishment. There is no guarantee that they will stop or even delay the garnishment, however, they will inform you what you must do in order to resolve the tax problem.
Being audit when filing unfilled tax returns is a common occurrence. Unfiled Tax Returns are easy targets, especially when the information on the return does not match the information the IRS has in your tax file. Let us prepare your unfilled tax return(s) and help reduce the chances of being audit. We complete the return based on the information the IRS provides to you, which automatically reduces the possibilities of audit. Your return(s) will match IRS's information. We will tell you how to get your information, and forward to us. We prepare tax returns based on IRS standards, information and procedures. (Registered Tax Return Preparers)
