Unfiled Tax Returns And Payment Plan
But… WAIT… Not Yet. If you are in an installment agreement for any taxes you owe to the IRS, having unfiled returns makes that agreement invalid! Be prepared to discuss your ability to make monthly payments toward all years combined. The trick is to get all delinquent liability years included under one agreement. This will stop future collection action, assuming you file and pay your taxes, and make your monthly payment on time. Calling the IRS will also determine if they are in the process of preparing a return for you. If so, they will have a special address for you to send the return to. This will prevent you from having to undo it later. Or worse, the rejection of your newly filed return. So be prepared to discuss your current financial situation.
Preparing Unfiled Tax Returns
You should have a current IRS form 433a filled out already. Pulling the record of account to see what the IRS shows under your social security number will not tip them off to take collection action. It is always good to know where you stand with the IRS as far as your personal income tax filings are concerned. When you are ready to file your unfiled returns and you are missing information, you can request a record of information sent to the IRS from third parties. This includes W-2′S, 1099′S, K-1′S, etc. You are also allowed to estimate amounts that you can’t calculate. There is an art to preparing unfiled returns. Make sure you have help from a tax preparer experienced in this area. I have made corrections to many poorly prepared returns that would probably have caused an IRS audit. In conclusion… Do not file any unfiled personal income tax returns without first requesting a record of account from the IRS and making sure that you understand what has been filed, if the IRS filed it, and how you are going to present your arguments for paying back the liability. You probably want to consult an expert advisor before you take any action in these matters.
No comments:
Post a Comment