Knowledge is protection when the IRS is involved. I'm Darrin Mish, a tax attorney in Tampa with 32 years of experience representing taxpayers nationwide. Here's what I want you to understand.<\/p>\n
As a taxpayer, it is your responsibility to file your tax returns annually whether or not you think you have made enough money to be taxed. The problem that gets some taxpayers into trouble is they do not file their tax returns because they feel they are not taxable due to their low incomes. If that describes you, you should remember that earning below the taxable income does not absolve you from submitting a tax return. If you fail to submit a tax return, the IRS\u2019 Automated Substitute for Return Program will kick in.<\/p>\n
The Automated Substitute for Return program is affects taxpayers who have not filed individual income tax returns, but owe a significant income tax liability. Under this program, the IRS will file a substitute tax return on your behalf without any deductions or tax breaks that you may be entitled to. This program determines and assesses the amount of taxes you owe using information the agency receives from Form W-2, Wage and Tax Statement, and the Form 1099 series, plus other internal data.<\/p>\n
Once your tax liability is assessed, the IRS will issue a proposed assessment (Letter 2566) informing you that you must file a valid return, consent to the proposed assessment, or appeal it within 30 days. Taxpayers who do not respond receive a statutory notice of deficiency.<\/p>\n
In the decade from 2002 to 2011, the number of tax returns the IRS has filed under the Automated Substitute for Return has risen significantly by eight times. But last year, the number of returns under the program fell by half, and the amount of tax assessed decreased by 54%. Nina Olson, the National Taxpayer Advocate said it was due to workload issues and a new practice of limiting the number of returns assessed at one time on the same taxpayer. The IRS no longer makes an Automated Substitute for Return assessment on a taxpayer who has a balance due for another tax year, she said.<\/p>\n
To improve the system of the Automated Substitute for Return program, Olson put forth some suggestions to Congress including contacting taxpayers before making assessments and not making them where the IRS has no confirmed address for a taxpayer. But to-date, these proposed suggestions have not been taken up by the IRS.<\/p>\n","protected":false},"excerpt":{"rendered":"
Knowledge is protection when the IRS is involved. I'm Darrin Mish, a tax attorney in Tampa with 32 years of experience representing taxpayers nationwide. Here's what I want you to understand. As a taxpayer, it is your responsibility to file your tax returns annually whether or not you think you have made enough money to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[591],"tags":[],"class_list":["post-18453","post","type-post","status-publish","format-standard","hentry","category-irs-news"],"_links":{"self":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/18453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/comments?post=18453"}],"version-history":[{"count":1,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/18453\/revisions"}],"predecessor-version":[{"id":22265,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/18453\/revisions\/22265"}],"wp:attachment":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/media?parent=18453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/categories?post=18453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/tags?post=18453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}