Unfiled Back Taxes
If you have years of unfiled back taxes, you may be wondering what options you have and even an overwhelming feeling of where to start. With the IRS experience and knowledge in protocols and systems, Allied Tax Advisory can close your case on backed, late, or past-due return filings. If you haven’t filed your taxes for many years and do not have the records and books necessary, there is an answer and it starts with Allied. Allied Tax Advisory Group has the resources to prepare your returns correctly by obtaining records from the IRS to see exactly what information they have on your income. To be current and compliant, the IRS requests the last six years’ tax returns to be filed.
How to Prepare for Back Taxes Owed
- Required Documents. You can start by gathering your records and pulling together the information for years where you did not file. Important documents include 1099s or W2’s from your job income, mortgage interest, dividends and stock sales. If you are missing records, Allied can help by securing internal IRS transcripts that will show what has been reported to them and cross-reference your own records to ensure all information is present.
- Get Tax Forms Prepared. It is important to get the returns for the years you missed. If the IRS has filed a tax return on your behalf called a Substitute for Return, be sure to re-file since the government will not give deductions. It is very likely that you will owe much less or get back more if you do this.
- File your returns. Allied Tax Advisory can take care of this portion to ensure correct filing and address.
- Pay what is owed. A financial review should be completed to determine how taxes will be repaid to the IRS. To pay in full you can pay electronically, send a check, money order, cashier’s check, or pay cash. The balances due for the backed returns may require a negotiating solution which involves a review of current income, living expenses, property and debts. Options include an Offer in Compromise, or Currently Not Collectible Status.
- Installment Agreement. The most common form of payment to pay back taxes is an Installment Agreement. With an installment agreement, taxpayers can pay back taxes in a monthly manner for up to 60 months. This will be more manageable especially if you are filing back taxes for two or more years.
- Offer in Compromise. An offer in compromise is a settlement program that allows you to settle what you owe for less. Contact Allied Tax Advisory to find out if this option is right for you, this is calculated if the IRS believes the total amount owed cannot be collected by the tax payer due to income.
- Getting declared as non collectible. This is a way to save time and funds to come up with the amount due. You can be placed in non collectible status if you can prove to the IRS that you can not pay your taxes due and be able to afford expenses of daily living.
Substitute for Return
It is important to file for yourself before the IRS files for you with a Substitute for Return. This will be filed against you if the IRS’s records show you earned income but there is no return filed within two years. A SFR will add penalties and fines on your tax return because it is based on the IRS’s best guess of your income. If the IRS has filed substitute returns for you, please contact the experienced CPA’s and Tax Attorney’s at Allied Tax Advisory Group to prepare correct returns for you to bring your debt to a lower amount.
- IRS FRESH START & DEBT FORGIVENESS
- WAGE GARNISHMENT
- BANK LEVY
- TAX LIENS
- INSTALLMENT AGREEMENT
- OFFER IN COMPROMISE
- IRS AUDIT REPRESENTATION
- CURRENT YEAR TAX RETURNS AND EXTENSIONS
- FILE OR AMEND PREVIOUS YEAR TAXES
- AUDIT RECONSIDERATION
- IRS APPEALS PROCESS
- NOT COLLECTIBLE STATUS
- PENALTY ABATEMENT
- INNOCENT SPOUSE RELIEF
- INJURED SPOUSE
- FBAR FILING & FBAR REPRESENTATION
- UNFILED BACK TAXES