What do you do when you find yourself facing an IRS Wage Garnishment or IRS Levy because of your Unfiled Tax Returns? Hopefully, you begin by looking for unfiled tax return help by someone who is qualified to help you.
If you can afford a full payment to pay your unfiled returns, by all means, that’s what you ought to do. If you can’t afford to pay them, there are a few options that are available to you.
You could ask for hardship status, which is also known as Currently Not Collectible.
When this happens, the IRS actually agrees that you have no ability to pay and will put your account in a holding. Sometimes for many years and won’t ask you to pay anything.
You could also see if you qualify for IRS Installment Agreements.
The other option you have is to file an Offer in Compromise. An Offer in Compromise is a deal where you will settle for less than you owe.
There are Tax Relief Help options out there.
First, you have to get your unfiled tax returns prepared. If you have more than three years you can call the IRS and ask them to send you the transcripts. Or you can hire a rep like myself, and I can get all those for you.
My name is Darrin Mish, if you need Unfiled Tax Return Help my phone number is (888) 438-6474.
What Do You Do When You Have Unfiled Tax Returns?
Do You Have Unfiled Tax Returns with the IRS?
Unfiled Tax Returns Can Be a Real Problem – Where Do You Start?
Unfiled Tax Return Help – How Many Years Back Do You Have to Go to File Returns?
Questions come up all the time in my IRS Problem Resolution practice regarding how far back my clients have to go to file their unfiled tax returns.
My answer to it is that you will have to file the last six years tax returns in most cases. Unless of course you are owed refunds in those past years. In that case, you will only be able to file your last threes years of unfiled tax returns.
The IRS makes a big deal out of unfiled taxes because the tax system is based on voluntary reporting of income.
Internal Revenue Manual 4.12.1 states that in most cases, the IRS is only going to demand to receive the last six years of unfiled taxes.
There are some exceptions to this rule.
One of those exceptions is if the IRS has prepared something called a Substitute for Return for you. Which is a return the IRS prepares under IRC Code Section 6020B. It allows them to file substitute returns in place of your unfiled taxes.
If you owe over $25k in those Substitute for Returns you chances are they will send a revenue officer to speak with you.
If hit with this, you have the right to a process called Audit Reconsideration. Which would allow you to file the original return(s)? In most cases, this will reduce your tax penalties and interests.
For example, let’s say you have a 2009 SFR return and it’s now 2016. You’re going to want to go ahead and prepare an original return for that 2009 tax year in many many cases.
But if you are going to have to full pay the tax, then you are going to want to file the original return. Otherwise, you’ll end up paying a lot more than you need to because of the extra interest and penalties.
Let’s push those exceptions aside though. In most cases involving unfiled tax returns, you will only need to file for the previous six years.
If you have unfiled tax return help questions, call my office at 888-438-438-6474 and we can chat about them.