Unfiled Tax Returns
It happens. For one reason or another, its easy to get behind on filing your tax returns. When this happens, the IRS calls it being "out of compliance" and compliance is a big factor in reaching a resolution of your tax issues. Compliance is required before the IRS accepts, among other things:
- Offer in Compromise
- Installment Agreements
- Garnishment release (in most cases)
- Bank Levy release (in most cases)
We can help you get into compliance, even if you no longer have the forms needed to file your returns. Enrolled Agents and certain other Tax Practitioners have the ability to request official IRS transcripts on your behalf. This tells us what income was reported to the taxing authorities and from there we can help you fill in the blanks to get your returns filed.
Substitute For Returns
For some taxpayers, the IRS will prepare a Substitute For Return (SFR). This is essentially the IRS using those official transcripts to prepare a tax return for you. Unfortunately, many of these returns are not accurate. The IRS does not know if you have dependents, if you qualify for tax credits or deductions, etc. Therefore the return is prepared bare-minimum and usually results in a much higher balance due than what would be owed if you prepared your own tax return.
If the IRS has prepared, or is in the process of preparing, a SFR on your behalf - there is still time.
An original tax return can still be filed. When processed, the IRS will adjust the balance due to the amount shown on your original return.