Need to File Delinquent (Missing) Tax Returns
We perform FREE Confidential Check-Ups to confirm what needs to be filed to be compliant and determine outcome to expect before you ever decide if you want to hire us to complete work!
If you have old Tax Returns (Minimum 5 or more years) that have not been filed, we have really simplified the process to get you back into good graces with the IRS. As Tax Practitioners, we can conduct a confidential check-up on your behalf to confirm what years need to be filed and even obtain ALL tax documents (W-2's, 1099's, Mortgage Interest, etc). This allows us to understand what needs to be done and even estimate the size of Refunds or Balance to expect if we prepare the returns. From there, we provide you with a quote so you can decide if you want our help in making sure everything is done properly to get you right back where you need to be with the IRS. It's really that easy.
Steps we take to file Missing Returns:
1. Discuss where you think you stand so we can get a sense of what is out there.
2. Perform a confidential check-up with the IRS to learn what years need to be filed for compliance.
3. Obtain all reported income documents so we have everything that is need to file Returns.
4. Review all information and get a sense of whether there will Refunds or Balances owed.
5. Call you to explain all information so you know exactly what's going on and what needs to be done.
6. You decide how you wish to proceed and if you want our help in making sure it is all handled properly.
Let's take the time to effectively determine what needs to be done. From there, you can decide whether you want our help in getting everything resolved or if you want to simply take the information we provide and handle it on your own.
Table of Contents for Filing Delinquent Returns (click to navigate):
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Need to File Returns using W-2's
If you are a W-2 EMPLOYEE and have not filed some old Tax Returns, we can make sure everything is handled properly so you aren't stuck wondering if you taking the proper steps.
If you need to file old Returns, we will perform a confidential check-up for you at NO CHARGE to confirm what years need to be filed and even obtain all of your tax documents (W-2's) for you. You will not have to try and dig through old records and hope you have everything. We will make sure all returns directly match IRS Records so you will never be hit with any accuracy-related penalties.
Once we get in and confirm what has been reported as income and determine what years we need to file for IRS Compliance, we will give you a quote to do this work so you can decide if you want our help in making sure it is all handled properly.
If you have not had enough taxes withheld from your pay that will result in balances owed, we will provide a full outline of all available options in properly resolving these balances so you can start getting some peace of mind with everything.
We will make sure you are ok even if you do owe some balances and be certain you are fully protected from any collection efforts.
Often times the IRS will hope you don’t file as they may have to issue you a Refund. However, it is always a good idea to file all returns to protect from identity theft issues and avoid someone filing a return on your behalf that can really create a lot of issues with the IRS. Besides, why let the IRS keep your money if you are owed a Refund?
If you are a 1099-EMPLOYEE, Please Read. When you receive 1099's, you are considered to be “self-employed” and the IRS will, essentially, tax you as a business. We highly recommend that you take advantage of our Free Consultation as the IRS is going to be much more aggressive with you than they will be with a W-2 employee. The IRS is aware you are not having taxes automatically withheld from your pay and they will actually file Substitute for Returns at the highest tax rate and without any expenses or deductions. This will inevitable result in very high balances that the IRS will start collecting against even though you really don’t owe as much as the IRS has assessed against you.
If you are a 1099-employee and have not filed some Returns, please reach out to us so we can see what has been reported as inome, avoid any inflated balances, and make sure you are only held liable for any tax that may truly be owed. Once Returns are prepared, we will determine what can be done to resolve these pending balances so you never have to fear aggressive collections from the IRS.
If you have not paid sufficient tax on any years that are needing to be filed and there are going to be balances that are owed to the IRS, we will provide a full outline of all available options in properly resolving these balances so you can start getting some peace of mind with everything. You are only required to pay in back taxes whatever you show as an ability to pay without causing undue financial hardship. There is always recourse and we will find the solution that is most applicable to your tax situation. From there, you can decide if you want our help but you are never under an obligation to hire us just because we take the time to fully review your issues.
What can I do if the IRS or State has filed a Substitute For Return or Estimated Tax Return for me?
In most cases you can override the numbers that the government has come up with by requesting a reconsideration and providing a copy of the tax return with the figures that you believe are accurate. 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. It is generally in your benefit to act quickly to correct their mistake rather than letter their assessment linger.
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.
We Keep This Process Nice and Easy
Many clients that come to us haven't filed tax returns 10+ years and have received notices from the IRS and simply don’t have the paperwork or tax documents to get everything caught up with the IRS.
Luckily, preparing past due tax returns is easier than you think and you have a few things working in your favor. First, we can protect from having to file ALL Missing Returns and can limit the requirement to only the last 7 years in order to confirm IRS Compliance. You probably don't have the records that you would need to prepare a tax return from further back than that, and neither does the IRS. So, even if you have not filed a tax return in 50 years, we will ensure you only have to file the most recent 7 tax years in order to have a clean bill of health with the IRS.
For the years that we do need to prepare a tax return, we can start by obtaining Wage and Income transcripts from the IRS. These transcripts show us all of the income that was reported to the IRS under your social security number and will include W-2's, Interest Income, 1099's, and all other tax documents that would have been issued to you for all tax periods in question.
These IRS tax documents will give us all the information we need to effectively prepare returns and prevent under-reporting of income or accuracy-related penalties. Obviously, we will also work with you to gather any additional deductions, expenses, and credits can be added to the return to improve your bottom line.
Colonial has software archives that allow us to quickly prepare tax returns from as far back as Tax Year 2000, if ever needing to go back further than the 7-year look back window. Sometimes, if you have failed to file a Return, the IRS will prepare a Substitute for Return so they can start collecting against you. We may need to override these balances so you are not stuck having to pay more in tax than what you should really owe! This will all be figured out in our Free IRS Check-Up!
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 or a 6020(b) return. Some people may refer to these as "Arbitrary Assessments".
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. They essentially use the same Wage and Income transcripts that we would use, but they then assume you were single, had no deductions or expenses, and wanted to be taxed at the highest tax rate.
This will usually result in a return with a balance due substantially higher than what you actually owe (unless you really were single, had no deductions, and no business expenses -- in that case, sometimes their numbers are spot on). Whatever number the IRS comes up with will usually be shared with the State that you resided in, and the State will then prepare a return for you as well, setting off a chain reaction.
Similar processes are used for business returns including wage withholding and sales tax, although the government typically has far less information available to them. In the case of payroll taxes, the IRS and States will typically use records of W-2's that you filed or unemployment information you reported to reconstruct a tax return.
If none of these records are available, sometimes they'll just take their best guess at it using your prior history to estimate what you owed. Once they do that, it's up to you to correct their figures.
If you need past-due tax returns prepared, call us today for a free consultation. Every consultation that we do includes a confidential Check-Up with the IRS to review the status of your account.During that call we can determine which returns actually need to be filed, and we can order the transcripts needed to prepare those returns, all free of charge.
Your Next Steps
Give us a call at (866) 573-3755 today to talk to someone safe about your situation.
We can have a quick chat on the phone so I can answer your questions and see if there is any way we can help you.
There is no risk and no obligation. We can really simplify this entire process for you!