Guide: Unfiled, Overdue, or Returned Returns
At Clarity Tax Resolutions, our team of former IRS agents and managers offers affordable solutions to help you reintegrate seamlessly and stress-free into the tax system. With over 15 years of firsthand experience in local, district, and regional IRS offices, we know the tax system inside and out.
Why Use Us to File Your Back Tax Returns?
- Expertise: Our team has successfully filed thousands of overdue, back, and unfiled tax returns, helping numerous taxpayers reenter the system and settle their cases.
- Peace of Mind: There’s no need to worry or fear. Understanding the system and realizing how simple it can be will give you instant peace of mind regarding your back tax issues.
The Problem with Overdue, Unfiled, or Back Tax Returns
The IRS is diligently working to catch up with non-filers. With an estimated 10 million taxpayers failing to file their taxes, this issue poses a significant challenge for the IRS. They’ve increased their technology budget to identify non-filing taxpayers and prioritize this problem. Each year, the IRS matches submitted tax documents with W-2s and 1099s through computer matching and software programs. If you haven’t filed in years, the IRS will eventually catch up with you. File before your case becomes a criminal investigation.
Which Previous Years Should You File for?
The number of years you need to file depends on your specific situation, typically ranging from three to seven years. We aim to file for as few years as the IRS permits. For cases with no assets, three years is usually sufficient. However, filing more years is beneficial if you want to build up your social security credits.
The Procedure for Backlog, Unfiled, or Late Tax Return Filing
- Assemble the Documents You Need: Gather copies of your bank statements and all previous 1099s or W-2s to determine your total income for the unfiled tax years.
- Reconstruct Revenue and Outlay: Reconstruct each year’s tax earnings and expenses to the best of your ability. Multiply monthly averages for rent, mortgage, food, insurance, car expenses, and other expenses by 12.
- Deposits to Income: Match all your bank account deposits with the total income reported.
- Verify Accuracy: Ensure your return accurately represents your circumstances and lifestyle. Avoid using pencil and rounding numbers.
- Send in Your Return: Complete your tax return and mail it to the IRS regional office nearest your residence. Even if you owe money, file your return and contact us to find the best settlement option for your lifestyle.
Lost 1099s or W-2s?
If you’ve lost your W-2s or 1099s, contact the companies you received them from and request copies from their payroll department. If the company is out of business or has no records.
IRS Numbers to Call If You're Not a Filer
The IRS will first notify you that they do not have a record of your tax return by letter or notice sent to your last known address. If you don’t reply, they may follow up with a call or letter, giving you another 30 days to file your returns. If you still don’t file, you might receive a visit from a Revenue Officer who will close the case. Next, a Substitute For Return (SFR) will be filed by the IRS on your behalf.
Substitute For Returns (SFR)
The IRS is authorized by IRC §6020(b) to prepare and file SFRs. For wage earners or taxpayers with no outstanding accounts, the Automated Substitute for Return (ASFR) system is usually utilized. The matter will be referred to a local revenue officer if a few requirements are not met.
Registering Even if You Have No Tax Debt
In most cases, you are not required to file if you owe the IRS.
Are Tax Penalties Deductible?
No, tax penalties are not deductible.
Where to Mail Unfiled, Back, or Delayed Tax Returns
To find a list of nearby IRS offices, visit IRS.gov.
Take control of your back tax issues with Clarity Tax Resolutions. Our expertise and dedication will help you navigate the complexities of tax filing, ensuring a smooth process and peace of mind.