Unfiled Returns / Missing Records & Back Taxes

Unfiled Returns? Free Tax Relief Consultation for Your Back Taxes  

Unfiled returns can bring about several serious problems

The first is the Statute of Limitations. The I.R.S. has ten-years in which to collect a tax due but the ten year starting period is from the date the return is filed. If the return is not filed there is no statute of limitations and the I.R.S. has an unlimited period of time in which to collect the tax.

This can become very serious indeed. Let us assume a taxpayer has 1099 income as a result of self-employment of $100,000 in 1990. For this example, let us say further that he moves overseas and returns to the U.S. in 2000 and in 2001 receives another $100,000 in 1099 income and again does not file a return. (The I.R.S. says that about 20% of the taxpaying public has not filed all its income tax returns.)

The I.R.S. was unable to contact him, as he was overseas for ten years. I.R.S. notices sent to his last known address were returned as undeliverable but the I.R.S. fulfilled its obligations as it mailed to the last known address.

Now the Service knows his source of income and where he lives. For the 1990 tax year the I.R.S. filed a substitute return and used it to assess a tax on the $100,000.

Something has gone badly wrong in his life, perhaps ill health, and his income is reduced to $40,000 a years.

On $40,000 he cannot pay $75,000 in back tax but he has not filed his tax returns. Now the I.R.S. decides to levy his wages and that will leave him just over $200 a week to live on. His $40,000 salary is more like $12,000 now and the I.R.S. will hold the levy on his wages until he files all his tax returns not filed. And now he can't find his records.

It is true that not all returns not filed and back tax situations are this serious but this example is taken from our files and is based on a real returns not filed situation.

Fortunately, this taxpayer found us on the Internet and we were able to prepare a proper return even though he was unable to find any of his records except for the most recent year. When we completed our work he actually owed about $12,000 and was able to work out a payment plan that was not overly burdensome.

Contact us for a free consultation and we will give you tax relief by helping you with your tax problems, back taxes or any other tax issues.

We suggest you do not represent yourself.
The I.R.S. is your adversary in these matters.