If you have not filed your taxes in a few years, you’re probably getting horror stories that other non-filers have experienced. Non-filing of tax returns may cause penalties, fines and even jail time. In fact, you are probably experiencing some trouble with the IRS right now. You are probably receiving notices from the IRS requiring you to settle your dues now. Before it gets any worse, you should definitely handle things correctly. But what is probably the best thing to do when you have not been filing your tax returns for many years now? Surely, you are inviting IRS problems into your life.
It’s an undeniable fact that you must file all un-filed tax returns, in the first place. This must be done even if you’re not financially stable to pay for all the penalties, fees and other charges. You should also immediately file your tax returns even if you are entitled to a refund. Otherwise, if it takes you a long time to file for those tax returns, your benefit of getting the refund will be lost.
Depending on your specific situation, consequences for not filing your taxes will vary. If you are a non-filer, setting your records straight will not only get you back in your financial track, it’ll also implore the IRS to stop enforcing penalties on you. This may come as a surprise but many people who are non-filers don’t even have tax dues. They simply didn’t file because they didn’t have the time or did not have the needed background. Now, they are facing a big IRS problem.
When you have come to terms with the fact that there is a need for you to file your taxes, it’s always best to seek assistance from a tax professional. He/She will be able to correctly file your taxes and help you in dealing with the IRS should any new troubles surface. His/Her experience in the field will be of great help to you too.
What information should you gather and bring to your meeting with your tax professional? Everything. Just to be sure, bring as much information as you can and it will be the tax professional’s responsibility to determine which are useful and which are not. Your W-2 forms, any 1099’s, receipts and other supporting documents for expenses, social security numbers for anyone you are claiming as dependent and a copy of the last tax return that you filed with the IRS are just few of these requirements. All of this and anything else you think you should bring must be available to your tax accountant. The more information they have, the better will be your chances of successfully straightening out your tax records with the IRS.
Refunds and benefits from the Social Security are mostly affected by the filing of your past tax returns. The IRS outlines that you should have filed for your corresponding taxes within three years if you would want to get a refund. After that, your right to a refund is lost and essentially, you have thrown your right to that particular amount of money. If you are self-employed, not filing your tax returns will result to not receiving credits that will be carried over to your Social Security retirement or disability benefits. Because of this, the IRS cannot report your earnings to Social Security, and consequently, you will not be qualified for a credit.
Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel’s Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com
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