Warning to Taxpayers With Unfiled Taxes or Who Owe Back Taxes

A woman in Connecticut says she checked her bank account only to find out all of her money was gone and wants to warn others so it does not happen to them.

This particular incident was with the State of Connecticut, however taxpayers should know that the same thing can happen with the Internal Revenue Service.  Taxpayers have the option for a payment plan if they owe taxes which they don't have the money to pay.

Ignoring notices from the IRS or any State tax agency is never a good idea.  Of course if you never receive the notices, that can create a problem.  Always be sure the IRS has a current address for you.  If you have a bank account or a job, "they" can find your money, even if they can't find you.

Software for Unfilled Taxes, Not Always Easy to Find

One of the biggest problems with preparing your own unfilled taxes is finding the right software. Even when I searched Amazon for software for previous tax years, there were a lot of “product not in stock” pages.

Once you find software for unfiled taxes, your next step is to obtain the correct information to included in the tax return. Its important for you to understand the difference in the information you have for the tax year and what the IRS actually has on-file, with your tax ID. If you file a previous year tax return WITHOUT the information which the IRS has on-file, this means your tax return will be flagged.

The best way to avoid a possible paper audit when filing past due tax returns is to contact the IRS directly and ask the the IRS to mail, or fax you the information they have on file.  

IF, you have concerns about contacting the IRS for your tax information, because 1) they will ask you for your employer's name and address, and 2) because they will ask you where, do you bank?
Then you are not alone.  The kicker is: It is a federal offense to lie to a federal agent. Are IRS customer service representatives considered federal agents?  You may not want to be the one to find out!

The IRS, will ask these questions because they will garnish your wages, and or levy your bank account should “they” decide that you owe taxes. The decision of whether or not you owe or not, is based upon the same tax information you need in order to complete your unfilled taxes.

If you need someone to contact the IRS on your behalf, then hire a tax professional to get the information. In fact there are services online which can help you obtain the information. Once you have the information, then purchase the software for unfiled taxes and prepare your unfilled taxes as quickly as possible.

IRS Has $917 Million in Refunds for Taxpayers Who Did Not File in 2009

OK, the announcement has been made by the IRS; there is $917 Million in tax refunds due to people who Have NOT filed their 2009 tax return.  These returns MUST be filed by April 15 of 2013 in order for you to get your refund.

 

This is a lot of money.  This means there are hundreds of thousands, if not more, taxpayers who didn't file, but if they had they would have received a refund.

 

The IRS is not in the habit of making a big deal over these massive amounts of refunds each year, however they do make a legal announcement, and each year, hundreds of thousand of taxpayers don't file and the IRS keeps the money.

 

If you didn't file in 2009 and you believe that you may be due a refund, regardless of how much money you paid in with holding taxes, you may want to get the ball rolling and file 2009 back taxes.

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IRS Has $917 Million for People Who Have Not Filed a 2009 Income Tax Return

WASHINGTON — Refunds totaling just over $917 million may be waiting for an estimated 984,400 taxpayers who did not file a federal income tax return for 2009, the Internal Revenue Service announced today. However, to collect the money, a return for 2009 must be filed with the IRS no later than Monday, April 15, 2013.

The IRS estimates that half the potential refunds for 2009 are more than $500.
Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.

For 2009 returns, the window closes on April 15, 2013. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2009 refund that their checks may be held if they have not filed tax returns for 2010 and 2011. In addition, the refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than refund of taxes withheld or paid during 2009. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). For 2009, the credit is worth as much as $5,657.

The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2009 were:

$43,279 ($48,279 if married filing jointly) for those with three or more qualifying children,
$40,295 ($45,295 if married filing jointly) for people with two qualifying children,
$35,463 ($40,463 if married filing jointly) for those with one qualifying child, and
$13,440 ($18,440 if married filing jointly) for people without qualifying children.

Below is information on how to get previous year tax return information, however, most people we come across need tax information in order to file previous year tax returns or back taxes.

 

This is another whole different story, because what you need from the IRS is the income and wage information AND any other information the IRS has on file, so you can prepare your past due tax returns.

 

This all sounds easy enough, however, know that if you have NOT filed your taxes, and you contact the IRS, they will have a lot more questions of you.  Questions like:

1. your current address?
2. where do you work?
3. what is your bank account information?
4. what is your contact telephone number?
5. and any additional questions they may have with pertains to your case.

That is why, it is often best to hire a tax professional to seek out this information for you, and have the tax professional prepare the taxes based on the information which the IRS provides.  This helps to ensure that the tax return is correct AND it decreases the chances of an audit, because ALL income for the tax year is accounted for.

 

Usually this entire process can be expensive.  There are online tax services which can help you and prices are published.  Unfiled Taxes Prepared dot com

 

 

How You Can Get Prior Year Tax Information from the IRS

 

The IRS offers several different ways to get tax return information or a copy of your own tax return for prior years. Here are options to help you get the information you need.

• Tax Return Transcript. This shows most line items from your tax return as originally filed, along with any forms and schedules from your return. This transcript does not reflect any changes made to the return after you filed it. Tax return transcripts are free. After the IRS has processed a return, transcripts are available for the current tax year and the past three tax years.
• Tax Account Transcript. This shows any adjustments made by you or the IRS after filing your return. This transcript shows basic data, like marital status, type of return filed, adjusted gross income and taxable income. Tax account transcripts are free, and are available after the IRS has processed the return for the current tax year and the past three tax years.
• Order a Transcript. You can request both transcript types online, by phone or by mail. To place your order online, go to IRS.gov and use the “Order a Transcript” tool. Order a transcript by phone at 800-908-9946. A recorded message will guide you through the process. You can also request your tax return transcript by mail by completing Form 4506T-EZ. Use Form 4506T to mail a request for your tax account transcript. You can get both forms online at IRS.gov.
• Tax Return Copies. Actual copies of your tax returns are generally available for the current tax year and as far back as six years. The fee for each copy you order is $57. To request a copy of your tax return, complete Form 4506, available on IRS.gov. Mail your request to the IRS office listed on the form for your area.
• Delivery Times. The turnaround time for online and phone orders is typically 5 to 10 days from the time the IRS receives the request. Allow 30 calendar days for delivery of a tax account transcript if you order by mail using Form 4506T-EZ or Form 4506T, and allow 60 days when ordering actual copies of your tax return by mail.
• More Information. The IRS website can help you decide which form you need. Visit IRS.gov, or call the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).

What to Do When the IRS Contacts You Because of Unfiled Taxes

Here is an upbeat video to help you understand your options when the IRS contact you because of unfiled taxes.  For immediate help, complete the funny looking form to the left, and we will help you.

Need Affordable Help w/ Back Taxes

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What To Do If You Can't Pay All of Your Taxes

The IRS understands that times are hard for many people. And they have release a list of tips on what to do if you can't pay all of your taxes on time. The most important suggestion is to still file your tax return on time. If you don't file on time, regardless if you have the money or not, you will receive a penalty for late filing. This is penalty you don't have to incurr. File on time, there is help, if you can't pay on time.

Tips for Taxpayers Who Can't Pay Their Taxes on Time

If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.

Here are five tips:

1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see IRS.gov. You may also mail a check payable to the United States Treasury

2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.

3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return
IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.

4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.

5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.

If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.