Our Tax Attorneys and CPAs will prepare and file your current missing returns to get you back into compliance and to ensure what the IRS says you owe is actually what you do owe.
Un-Filed or Missing Returns
Colonial Tax Consultants will help you to gather the necessary information and file any state of Federal Tax Return. Your Colonial Team consisting of an experienced Tax Attorney, Certified Public Accountant and Enrolled Agent will make sure you take advantage of every tax law that’s out there for you ensuring you owe as little as legally possible on your back tax returns. Once the missing returns are filed we will not only work with the IRS and state to resolve any liabilities but direct you on how to structure your business and personal finances so you owe less in future years.
What happens if I don’t file my tax returns?
If the IRS and state do not receive a tax return for you their most likely response will be to file one for you. For the IRS this process is called filing a Substitute For Return and each state has a similar program. These are often referred to as Arbitrary Assessments or Estimated Tax Return Filings. The IRS has a lot of information reported to them by your employer, your bank, and your customers. They will use this information to determine your gross income and file a return for you. Since they are not aware of your filing status or any business or personal deductions you can take they will not give you credit for any of these. This will result in a return with a balance due substantially higher than what you actually owe. They will then forward this information to your state which will then follow suit. If you own a business and fail to file a employment, withholding or sales tax return they will either go by what you reported to the Social Security Administration to file a return for you or simply add 10, 15, 20% to the last period return that you have actually filed.
What can I do if the IRS or state has filed a Substitute or Estimated Tax Return for me?
The first thing you need to do is contact the taxing authority and request that you be allowed to file an actual original return and have the Estimated Tax Assessment reconciled to what you actually owe. Generally, the IRS will allow you to do so, but a lot of states have time limits for filing the original return so you might be stuck with the figures they used. Then you need to prepare the return(s) as soon as possible. Due to the difficulty in filing old returns accurately and convincing the IRS/State to accept them, professional assistance is always recommended. At Colonial, we have tax software to prepare tax returns from as far back as 1998 and can prepare tax returns from earlier than that by hand. We are experts in recreating these older returns using wage and income information provided to us directly by the IRS and then conducting an in-depth interview to ensure that every deduction is found and every tax advantage is taken.
