You may have avoided to file taxes over the last few years and now you may have questions regarding your delinquent tax burden. Just to be sure, the IRS may choose to generate a tax return(s) for you, called a Substitute For Return (SFR). The new federal tax laws coming into effect in 2013 bring a ton of new federal tax regulations and reporting requirements, most notably, the giant new tax structure around the new-implemented Affordable Care Act, known also as Obamacare.
To speak to a tax help representative, phone us at (888)253-3452
Whether or not you think you have low wages, little interest income, subcontractor payments, sale of property, etc., this does not matter to the IRS which takes matters into its own hands. The IRS substitute filing on your behalf assumes you are single, have no dependents, and uses the standard deduction.
When you don’t file taxes, you may actually have a much larger tax bill than you deserve due to the IRS assumptions about you. You also have created other problems. In some cases you can’t get an installment agreement without filing the missing returns. You can’t submit an Offer in Compromise if there are missing returns. Bankruptcy may not include old years if those returns were not filed. And the IRS may continue to collect on the SFR balances.
While there are many reasons why a taxpayer may not file a tax return, you need to be aware of the following:
- Failure to file tax returns may be construed as a criminal act by the IRS
- Failure to file tax returns does not mean you don’t have taxes due- the IRS may file “SFR” (Substitute For Return) Tax Returns for you. This is when you fail to file a return and the IRS does so for you
- Because SFR returns are filed in the best interest of the government, the only deductions you’ll see are standard deductions and one personal exemption
- You will not get credit for deductions which you may be entitled to such as exemptions for spouses, children, interest and taxes on your home, cost of any stock or real estate sales, and business expenses, etc
Call us today for a free phone consultation regarding
your unfiled tax returns (888)253-3452