FILING PAST US TAX RETURNS

If you have been required to file a tax return previously, but have failed to do so, you must file all tax returns due regardless of whether or not you can pay in full.

 

WHY YOU SHOULD FILE YOUR PAST DUE RETURNS NOW?

 

·      Avoid Penalties

·      Claim a Refund

·      Protect Social Security Benefits

·      Avoid Issues Obtaining Loans

 

IF YOU OWE MORE MONEY THAN YOU CAN PAY

 

If you find your self in the predicament where you owe taxes, but cannot afford to pay them right away all is not lost. There are a number of options to deal with this circumstance. The IRS have set up a number of methods that allow you to arrange a payment plan to pay the IRS taxes over a period of time.

It is vital that you do not ignore the taxes due as this can lead to interest and penalties.

 

METHODS FOR PAYING OWED TAXES

There are a variety of payments options available to taxpayers. Two options for those who want to make a payment using the IRS’s electronic payment systems: Direct Pay and Credit or Debit Cards.

Direct Pay- You can pay your tax due from a checking or savings account free with the IRS’s Direct Pay system. You will receive an instant confirmation once the payment is made. Taxpayers can schedule payments up to 30 days in advance, which can be useful in limiting against missing a deadline.

Credit of Debit Cards- As a taxpayer you can also pay your due taxes by debit or credit card online or by phone. Your payment will be processes by a payment processer. The IRS does not charge for this service, however fees can apply and vary depending on the processor.

 If you wish to pay your owed taxes using a mobile device, you can use the IRS’s official app: IRS2Go. You can pay with either direct pay or debit or credit card. IRS2Go is currently available on Google Play, Apples App Store and the Amazon App Store.

Those who are unable to pay tax debt immediately can apply to make monthly payments. Before applying for this agreement taxpayer’s must file all required tax returns. You can apply for an instalment agreement through the IRS’s Online Payment Agreement tool (https://www.irs.gov/individuals/online-payment-agreement-application)

 

THOSE ELIGIBLE FOR A MONTHLY INSTALMENT AGREEMENT:

·      Individuals who owe $50,000 or less in combined tax, penalties and interest and have filed all required returns

·      Businesses that owe $25,000 or less in combined tax, penalties and interest for the current year or last year liabilities and have filed all required returns.

 

If you fail to file voluntarily

 

SUBSTITUTE RETURN 

 

If you fail to file, the IRS may file a substitute return for you. This return might not give you credit for deductions and exemptions you may be entitled to receive. We will send you a Notice of Deficiency CP3219N (90-day letter) proposing a tax assessment. You will have 90 days to file your past due tax return or file a petition in Tax Court. If you do neither, we will proceed with our proposed assessment. If you have received notice CP3219N you can not request an extension to file. 

If the IRS files a substitute return, it is still in your best interest to file your own tax return to take advantage of any exemptions, credits and deductions you are entitled to receive. The IRS will generally adjust your account to reflect the correct figures.

COLLECTION AND ENFORCEMENT ACTIONS

 

The return the IRS prepare for you (our proposed assessment) will lead to a tax bill, which, if unpaid, will trigger the collection process. This can include such actions as a levy on your wages or bank account or the filing of a notice of federal tax lien.

If you repeatedly do not file, you could be subject to additional enforcement measures, such as additional penalties and/or criminal prosecution.

alistair bambridge