Delinquent Returns

Do You Have Delinquent, Unfiled, Late, Past Due, Old, Overdue, IRS Back Taxes, Or Returns?

Filing Delinquent Federal Income Tax Returns, Or Back Taxes

If you have old delinquent returns to file, the IRS can and will use the delinquent returns against you in many ways. For example, if you have a refund coming to you, and you file more than 3 years past the due date (including valid extensions) most of the time, the IRS will keep the refund. The IRS will not even offset the refund against a old tax liability from another year. If you are in a "binding" installment agreement to pay a prior tax liability, or in an uncollectible status, the filing of any return or the paying of any tax late will void the agreement. This will cause all money to become due immediately. Often when an agreement is in default, taxpayers find out via a levy on their bank account or paycheck. Even worse, taxpayers may find out through a levy on their spouses paycheck or a lien on their house and other property! Taxpayers are not always notified first about settling their past due taxes. Sometimes, even the representative was not notified! The IRS may have filed a return for you, charged you with the tax, and is now about to take collection action against you. You probably are not aware of it yet. You are about to find out the hard way! Even if you like the way they prepared the old or delinquent returns (most likely because they charged you with less back taxes than you thought it was going to be) you still need to sign the return. Otherwise, the statute of limitations on assessment does not run. This means that the IRS can audit you and/or charge you with additional taxes at any future time. Normally they have three years from the time you send a return in. Even if for some reason you are not required to file, you should file anyway. This would protect you and your accountant from having to prove that you were not required to file many years after your IRS past due returns were due!

Owing Money Due On Back Taxes And Old Delinquent Tax Returns

If you will owe money on any unfiled delinquent returns, or back tax returns, that you cannot fully pay when you send in the returns, then read Owing on the left side of the page. Your solution will involve dealing with the collections division. This applies to un filed personal 1040, payroll, 941, 940, 943, Corporation, 1120, Partnership, 1065, LLC, and other past due late business tax returns.

Solution...Delinquent Tax Return Representatives, etc.

You need to file any old back tax forms or delinquent returns immediately. Even if you are missing records, afraid that there is a possibility of owing money, confused about how to fill out the forms, or afraid to tell the IRS where you are, chances are you still need to file now. You should seek a free consultation with a professional representative who can advise you on what to do in your situation. Over the years I have collected dozens of excuses for not filing from people - most of which are not valid. Get your questions answered and put this problem of owing federal tax behind you once and for all. I will help you file previous years' returns successfully. As an unfiled return advisor, I cannot stress this enough.

Taxpayers Who Have Unfiled Tax Returns

It's very important to file and pay your taxes timely. If you don't, you will have to deal with the various attempts the IRS makes to get you to file, to file for you, and to collect the money due. You will also have to pay penalties and interest on any underpayments of tax. Not filing returns will put you in a non-filing status. After several requests, the Internal Revenue Service will attempt to summons information from you and any of your banks they have on record, so they can prepare a return for you. They may choose to bypass this step and directly file a return for you based on the information they already have.

How Many Years Back Must I file My Delinquent Tax Returns?

Usually you will have to file the previous six (6) years, plus the current year. Beyond that, you may be off the hook, depending on what years the IRS will request. We usually wait for any request before we prepare returns going back further then six (6) years, if our client wants to assume that risk. However, it is truly a great feeling to know that you have obtained back tax help, filed all missing years, and no longer have to worry about being asked to file any more years of delinquent tax returns. Often the amount of money you will owe helps in the decision to file those "extra' back years. We are available for IRS non filed tax help.

Substitute For Returns (SFR)

Reasons People Give for Not Filing Back Taxes

• I forgot or were too busy.


• I didn't know I had to file for that year.


• I am missing key records to determine our tax liability. Records such as payroll reports, W2's, 1099's, K-1's, etc.


• I lost my records from moving, a flood, fire, theft, etc.

What is your reason for not filing your federal tax returns?

IRS Actions When You don't File or Don't Report Your Income

The IRS often doesn't care what your reason is for not filing, or owing back taxes. They have improved their programs for matching 3rd party payer records with individual and businesses who have not reported that particular income source. It's better to resolve your unfiled returns before the IRS comes after you. By taking action now, you will have more time to file. After we pull the records the IRS has on you, you won't be defending why you didn't include income on your return. Mostly, you will probably avoid an audit of your old return.

When the IRS finds that the income is not reported on your return, or discovers a return is not filed, they will start sending out notices. The notices will either request that you file, or charge you with additional taxes. If you ignore the letters, or do not resolve the matter to the IRS's satisfaction, they may turn your case over to a collection officer who may call or visit you. I've never had a taxpayer tell me that the visit was a pleasant experience!

It May Take Years To Discover Delinquent Filing

Sometimes it taxes several years before the IRS notifies you that you did not file your return. This is not the situation you want. After several years pass, you may have lost vital records, and have forgotten much about your financial situation. The interest and penalties for filing and paying late may be insurmountable! Please take action now to resolve any delinquent tax return issues you have. This will minimize any non filer assistance from a CPA or Attorney you will need to help solve you past due returns.

How Substitute For Returns (SFR) Are Prepared

The SFR unit will examine and use all W2's, 1099'S, K-1's etc. that was reported to the IRS. They will probably choose the "single" filing status. The IRS will only allow deductions for your personal exemption and standard deduction (not itemized deductions). I strongly suggest that you file to preserve your deductions. What if they compute a lower liability than what you think it is? That's a tough call, it's important to know what the IRS has on you, and what visual means of expenses you had. You must know what constitutes income and what deductions you are allowed, in order to make an intelligent decision concerning accepting an IRS filed substitute for return. We can assist you with any past due tax relief you want negotiated. Email us or call 713-774-4467 for back tax help.

Collection Statute Of Limitations (SOL) - Replacing Your Returns

The good news is that the statute of Limitations on collections (10 years) does not run until after the assessment from the SFR is made. An Assessment is when the IRS or you prepare the return, then the IRS gives you your appeal rights, the time expires, and you are charged the tax. The charging of the tax to you is the assessment. Baring any extensions of the statute, such as filing a bankruptcy, offer in compromise, signing a waver, the IRS reducing the liability to a judgment, etc. the IRS will have 10 years to collect the taxes, or they must remove the liability. It's not as automatic as you thought, is it?

Despite the IRS's attempts to stop some taxpayers, returns can be filed and accepted at any time after the IRS files an SFR. You should file the return to lower the taxes they computed. If the return is over 3 years past the due date, including extensions, and no payments have been made within two years, you will not get a refund. Call our office if you need income tax help.

Criminal Charges For Not Filing Delinquent Tax Returns

Intentionally not filing your income tax return is a federal crime. Some people say it is punishable by up to $25,000 and one year in prison, for each year not filed. Many of my competitors giving back tax legal advice will try to scare you into believing that you have to have an attorney represent you to avoid these criminal charges. They may also tell you that the "attorney client privilege" is what is needed to protect your confidentiality. Then they tell you or imply that only an attorney can provide it for you. Do not believe it! After thousands of tax cases and over 25 years of IRS representation practice, I've never had a client, or potential client, who was ever even accused of a crime by the IRS criminal investigation division!

The burden of proving "willfulness" is on the IRS. You do not have to prove that you tried or wanted to file your taxes but had a good excuse for not doing so. The IRS wants people to file and pay their taxes. They are happy to assist people with full compliance of the IRS rules. It's people who speak out against the IRS and who persist in making statements concerning their desire to not file their returns, who the IRS tries to prosecute. If you are a know protester who has sent written statements to the IRS about how the laws are unconstitutional, and the IRS criminal investigation has an open file on you, then yes, you need an attorney. Not an IRS representative attorney who advertises for people with tax problems, but a good criminal lawyer who has a reputation for keeping people out of jail! Anything short of that tax need for a tax fix, call my office and we will be able to help you get back into compliance with the IRS rules on filing and paying your taxes. Many of my clients haven't filed in 10 or more years. They are in no danger of criminal charges from the IRS because of it. That's expert tax relief they won't need negotiated later on.

Problems From Not Filing & Paying Taxes

The following situations require that you file your income tax returns, or at least use those reports as information for consideration of benefits to you.

- applying for bank loans	- obtaining credit for charge cards
- applying for student loans	- getting social security
- obtaining a home loan	- getting Medicare benefits
- getting unemployment benefits	- applying for certain jobs

You must file any unfiled returns if you want to enter into a binding agreement with the IRS to pay off any taxes owed from filing backtaxes, to get an offer in compromise accepted, to have backtaxes discharged in bankruptcy, or for most other types of settlements.

Worst Tax Trouble From Not Filing Over due Returns

The IRS will take various forms of collection action, not limited to the following...

They can seize your paycheck, bank account, wages, A/R, brokerage account, retirement account, social security, and any other source of funds you are entitled to. They can seize you house, car, boat, land, and any other assets you have an equity interest in. This includes asset in business arrangements such as corporations, partnerships, trusts, llcs, etc. I've heard of revenue officers taking the stock of people's corporations, though I wouldn't let them, if you were my client. In community property states they can seize your spouse's paycheck and any other accumulations of income such as the receipt of rent, interest, royalties, etc. All this because you have a prior year tax delinquency.

Procedure For Preparing Your Overdue U.S. Income Tax Returns

Gather up the documents you have, W-2's, 1099's, K-1's, etc. (We can get them for you!)

Seek to get as many missing documents as you can.

Obtain a copy of the last return filed.

Have someone with a lot of experience prepare them. Find good tax reps like our firm.

BUT DON'T SEND THEM IN! WHY?

Because when dealing with the IRS, it's important to protect yourself from being victimized by IRS employees who feel like it is their job to punish you because of your late filing and paying of taxes. They will try to make life difficult for you. They may try to give you little time to file, not care if you overpay, and to pay more on their terms, not yours. Do you want your past due tax problem with CPA advice?

Here's How Joe Mastriano, P.C. Handles Old Return Cases.

We get a power of attorney on file with the IRS CAF (Central Authorization File) Unit. This way all employees of the IRS are supposed to contact us before they contact you.

We pull transcripts, from our computer, of the IRS record of account for several of the past years. This way we see what the IRS has on you.

We pull wage and income records to see what income was reported to them.

We decide when it's appropriate to contact the IRS and ask for a deadline and their agreement not to take collection action prior to the deadline.

We prepare your returns, or allow you to prepare them, using the information we pull from the IRS records.

Once the returns are filed by the deadline, we will work out your best solution, whether a payment plan or an offer in compromise. Maybe you just need a few months to pay in full.

We will call the IRS automatic collections or customer service to obtain the status of each delinquent year. They will give us specific mailing instructions for each year. If a revenue officer is assigned your case, they will collect the returns and forward them to the service for processing. You lose the benefit of filing them separately, but sometimes I can have you file separately, without giving them to the Revenue Officer.

Ways To File Your Delinquent Returns, Or Where To File Back Taxes

Filing Late Returns Online

You can file your past due returns on line if you choose to. I don't recommend it. People have told me that they regretted not giving themselves time to reflect on the accuracy of the return. Don't let the IRS, or any taxpayer representative bully you into filing a return so quickly that it is full of errors. This may increase your tax debt or cause an examination. In most instances I will get you the time you need.

Electronically Filing For The Refund

Too many people or so desperate for their refund, that they run to a non professionally licensed company to file for them electronically. This way they quickly get their refund, or refund anticipation loan. Please don't do this.

Hand Deliver Your Returns

This is one of the best methods. Employees of the IRS may lose your returns, and can be slow to get your returns filed in the IRS data base. Go to an IRS walk in office and get them to give you a stamped "receipt" copy of the first page of each years return. You now can prove later that you filed, and on what date.

Send Them To The SFR Unit

If you are told by collections or customer service to send certain years to an SFR unit, then that is better than the methods above for those years. Any years that you are told can be sent to the regular processing center can be sent using the above methods.

File Old Returns Separately And Certified

When you don't have a revenue officer or collections giving you a short deadline or place to file to avoid an SFR being filed, mail each return separately, a few days apart. This will get them processed easier, and bypass consideration of possible fraud. Mail each return certified, return receipt, so you have proof of filing your overdue taxes.