Information about Non-Filing of Tax Returns
If you’re guilty of not filing your taxes for a few years already, you are probably experiencing some issues with the IRS right now. You may have been getting notices imploring you to settle your taxes. Non-filing of taxes may lead to penalties, fines and even jail time, among others. Therefore, before matters get worse, it’s best that you set things right. You may ask: what will become of me when I have apparently disobeyed the law? The truth is, you’re basically putting yourself in danger with the IRS.
Filing the un-filed tax returns is the first step to setting your records with the IRS straight. You must do this even if you have doubts regarding your capacity to pay for all tax dues, including applicable penalties and fees. You must also immediately file your tax returns even if you are entitled to a refund. Otherwise, this benefit will be lost if you don’t attend to this matter right away.
Depending on your specific situation, consequences for not filing your taxes will vary. If you’re a non-filer, cleaning up your tax records will cause the IRS to stop enforcing their collection procedures on you. In fact, many people who haven’t filed tax returns don’t really owe the IRS anything. They simply didn’t file because they didn’t have the time or didn’t have the needed background. As a result, the simple excuse is now a big legal battle.
It’s a good idea to employ the services of a tax professional when you decide to file for taxes that should have been filed before. He/She can certainly help you out as you go through the procedures of filing and as you face current and subsequent IRS problems. In addition, he/she will be able to give you sound advice on IRS guidelines because of his/her solid experience in the field.
What requirements should be brought to your meeting with the tax professional? All that is available. Bring as much information as you can and let your tax professional identify what you do not need. Your W-2 forms, any 1099′s, receipts and other supporting documents for expenses, social security numbers for anyone you are claiming as dependent and a copy of the last tax return that you filed with the IRS are just few of these requirements. All of this and anything else you can think of must be available to your tax accountant. The more information they have, the better will be your chances of successfully reconciling your tax records with the IRS.
Filing your past tax returns as early as possible will largely affect your rights to a refund and your benefits from the Social Security. A refund can be availed of only if you have filed for the corresponding taxes within three years. Beyond this point, your right will be forfeited. Basically, this means that you are givng away your money. If you’ve failed to file a tax return and are self employed, then you will not receive credits that will be carried over to your Social Security retirement or disability benefits. The IRS will have no record of your taxes so they can’t report your earnings to the Social Security, thus, you will not be given tax credit.
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