Whatever you do, don’t let the fear of paying stand in your way.

Many people are surprised to learn that they are due a refund for a prior tax year.

Or, they may owe a lot less than they thought.

If you haven’t filed in years, you may not be able to claim a refund for every year you are due one. You only have three years from the original due date of the return to claim refunds. However, you may not be in as bad of a situation as you thought you were.

IRS Can File For You… but You Don’t Want Them To

You shouldn’t ignore your situation. The IRS can file a substitute for return for you based on the information it has received.

How can it do that?

Employers, banks, and other institutions must report to the IRS what they’ve paid to you.

The problem with this is that the IRS isn’t interested in lowering your tax bill. They don’t apply all the deductions you may have coming to you; most likely, they even don’t know about them.

The IRS will also assign you a filing status of either married filing separately or single. This will pump up your tax bill if you should actually be married and otherwise would file jointly.

As you can see, the IRS may come up with a figure higher (even much higher) than if you sought the advice of a trained, experienced tax professional.

So What Do I Do?

You know that you are in a situation that needs rectifying. Who wants the dark cloud of possible IRS action hanging over them?

Here are the first three steps:

1. Get your records together.

Not just tax forms you’ve received in the mail, but any other receipts or records that could result in a tax deduction. This includes anything you have given to charity or to the church or synagogue. Your medical receipts, in the event they exceed a certain portion of your income. If you own a business, receipts for any expenses would be important. It would be a good idea to keep any notices you have received from the IRS as well.

2. Consult with an experienced tax professional.

Enrolled Agents (EAs) can not only prepare tax returns, they can speak on your behalf to the powers that be. They are the only federally-licensed tax practitioners who both specialize in taxation and have unlimited rights to represent taxpayers before the IRS.

3. File returns for prior years.

Now, this depends on your unique situation. Your EA will advise you on what to do. Let’s say it’s been 20 years since you filed a return; you may not need to file a return for all those years. It all depends on your unique circumstances.

Even if you do face penalties, you may be able to minimize them. Again, an EA can assess your unique situation and give a solid recommendation. They can put you on the best path, the one where you owe the least amount of tax and are back in good standing with the IRS.
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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting Services as well as the Enrolled Agent and Certified Tax Resolution Specialist for SFS Tax Problem Solutions.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

The book is available in paperback and ebook on https://Amazon.com
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For more on SFS Tax Problem Solutions, visit: http://sfstaxproblemsolutions.com/
For more on SFS Tax & Accounting Services, visit http://sfstaxacct.com/
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738 Colorado Avenue Stuart, FL 34994
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Phone: 772-337-1040
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https://linkedin.com/company/sfs-tax-problem-solutions
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