Need to File Back Taxes, Not Sure What to Do?

The good news is:  If you haven''t filed for several years and the IRS hasn't contacted you or made any effort to have you file a tax return, then the changes are good, that "they"(the IRS owes you!

The not so good news is:  The IRS will only send you so many notices concerning your unfiled tax returns before they will contact your Employer and legally garnish your wages.

The additional collection tactic that the IRS uses, often is to levy your bank account when you owe taxes and have not made arrangements for a payment plan or requested an Installment Agreement.

This additional collection tactic is very much legal and often times, causes a major surprise for taxpayers who go to use their bank cards only to find out that the IRS has levied their "They" (the IRS) have been known to take money out of the savings and the checking account(s)

To avoid these unpleasant surprises you may want to make a sincere effort to file your unfiled tax returns(s) as quickly as possible.

In many cases people have lost their W2(s) and other tax information needed to prepare their returns.  Not a problem.  There are services online who will help you obtain this information directly from the IRS.  Or, you can call the IRS and have the information mailed directly to your home, or faxed to you.

It's not advisable to try and complete unfiled tax returns without the correct and exact information.  If you file the return with missing or incorrect information, the return will be tagged and stands a higher chance of being audited.

When you contact the IRS by calling 1 800 829-1040.  Be prepared to wait for 15 to 60 minutes before you can talk to a representative.  Be patient, listen carefully to what the representative says and confirm the date that your taxes will need to be filed by.  Obtain the correct address to mail the return.  In some cases you may be transferred to collections.  Don't let this frighten you, and if it does, politely hang up the phone and contact an experienced tax professional to handle the situation.

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).

Does Unfiled Taxes Make You a Criminal?

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)

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.

Tax Preparation Tips; Why You May Want to Change Your Refund Method

The Reason the IRS Encourages e-Filing.

The chances of a tax return being 100% correct is increased greatly when accepted by the IRS e-filing system. It cuts down on errors and the work involved with documenting a tax payers tax information.

It is much much easier for the IRS to keep track of tax returns electronically.  The massive amount of paper generated when over 133 million individual tax returns show up over the course of the year can be overwhelming.

And believe it or not, keeping up with tax payers, using the computer makes it easier for everyone.  Different IRS employees can access different tax payers records, when permitted by the system, and can note the account so the next IRS employee will know exactly what is happening with the account.

Tax Preparation, Do You Have to e-File?

No.  However tax preparation professionals are required to attach a Form 8948, Preparer Explanation for Not Filing electronically, to the tax payers tax return.  Tax Preparation professionals are not required, yet, to send this information to the IRS.

Potential Problems With Refunds Placed in Bank Accounts

Tax payers who have received a refund for years have no problem providing the IRS with their bank account numbers in order to have refunds placed into their accounts.  And this is safe and fast way to get a refund.

However, what happens when one year, you get a "big"increase in income, and you end up owing the IRS a lot more than you expected?

No, the IRS, usually won't levy your bank account without going through the proper procedure, but the truth is, they already have your bank account information.  Now, this is NOT a serious problem, because, when they really want to know where a taxpayer banks, they can find out.

The fact is, there is added stress for the tax payer, because the IRS knows more about your private banking habits then you would like for them to know, after your annual income has doubled and for some tax payers, tripled!  (Everything changes when you become one of the high earners)

This is not a serious issue, however, for taxpayers who are planning on moving up the corporate ladder, it's something to think about.

Tax preperation tips has been brought to you by Taxes Will Travel - Online Tax Service for unfiled and current year taxes.

Tax Preparation for Unfiled Tax Returns, and Substitute Returns

Tax Preparation is the key when you have unfiled taxes.  The IRS will send you notices in an effort to get you to file your return(s) and when you don’t respond they will prepare what they call a Substitute Return and regardless of what you say, this will become the amount that you will owe the IRS.

They can then garnish your wages, levy your bank account and require that you pay what the Substitute Return says you owe.

The ONLY way to change what the Substitute Return says is to file your OWN tax return.  This is when tax preparation becomes key.  Your tax return has to include all income which is in your tax file.  This is not the time for your tax return to say something different then what the IRS has on file.

Your tax preparation must match the income on file and can include the legal and reasonable deductions which you are entitled to.  This unique work does not require a high priced law firm.  What is needed is a tax preparation service which has extensive experience in filing and preparing past due tax returns.

You can contact http://taxeswilltravel.com now and view the fees for tax preparation on the home page.  The service is licensed, bonded and registered with the IRS and provides confidential online tax preparation