Past Due Returns

Department of Treasury, Internal Revenue Service Preparer's Tax ID P00136220

Why You Want a Tax Professional to Complete Your Past Due Returns ...

We can find out exactly what the IRS knows about each tax year in question without having to admit or commit to anything, other then getting the return filed by a certain date. (And that depends on the tax payer signing and mailing the return)

If the IRS has filed a substitute return for you, (that's a return that the IRS files for you to determine how much you owe "them") the only way you can change the amount that you owe is by filing your own previous year return.

We contact the IRS for you, get the income documentation that they used to prepare your back taxes and we include your dependents, if any, and other legal deduction that you are entitled to, to lower your tax liability.

A good tax service will provide an audit alert summary of your previous year tax return based upon returns filed by millions of other tax payers in your same tax bracket.

Never, Ever ..........

Never lie to the IRS about your assets or anything else. It is a federal crime to lie to a federal agent.

Have us prepare your back taxes based upon the IRS's documentation of your income for the years(s) in question. This way, your income is reported correctly and you can get a true picture of how much you owe the IRS.

If You Are Caught Cheating

If you are caught in a lie by the IRS, they can refer your case to the IRS's criminal investigation division (CID)

When filing back taxes, tax payers often use the best guest estimate because records have been lost or they don't have the receipts.

If you are audited, you can show proof with an image or a statement of accounts - It depends on the auditor if he/she will accept your explanation.

What If You File Back Taxes and the IRS Owes You?

If you file your back taxes within the 3 year window, of when they were due, the IRS will mail you a refund check - unless you owe for previous years and then your refund check would be applied to your tax liability. (If you owe child support - contact your attorney)

If you are a single parent with one or more children, and your income is low to medium, you may be entitled to a handsome refund.

If You Can Not Pay Your Back Taxes

If you cannot pay your back taxes, you may be able to:

Make monthly payments (You must have filed all past due returns)

IRS will give you 60 months to pay your tax bill on a payment plan.
Once we have completed the correct forms, you can mail the Request for Installment payments to the IRS. The IRS will respond using USPS.
Most payment plans are accepted unless you have defaulted on a previous plan in the pass.
If you have defaulted in the pass, we will help you complete the necessary paperwork to get your payment plan reinstated. This is totally up to IRS's discretion.

You May be able to apply for an Offer in Compromise, IF: - (will be referred to our Enrolled Agent)

Doubt as to liability
Doubt that you would ever be able to pay the full amount of tax owed
You have an economic hardship or other special circumstances
http://www.irs.gov/newsroom/article/0,,id=120169,00.html

You may qualify for a temporary delay or your case may be considered s significant hardship - (will be referred to our Enrolled Agent)

IRS can collect outstanding taxes for ten years.

The ten year period is automatically extended for bankruptcy.

Bankruptcy - Interest & Penalties Stop Accruing the Moment You File!

Filing a petition under the US Bankruptcy Code can often reduce tax debts. Consult an Attorney for more information The moment you file for bankruptcy ALL creditors must "stop" contacting you directly. The downside to filing bankruptcy is it will effect your credit for years to come.

You want to file all of your back taxes, before you file for bankruptcy. Consult your attorney for BK Laws.

Liens

Liens gives IRS a legal claim to your property as security or payment for your tax debt. Once a lien is filed, your credit rating will be effected. The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivables)

The full amount of your lien will remain a matter of public record until it is paid in full.

Levies

If IRS levies your bank account, your bank must hold funds you have on deposit - up to the amount you owe, for 21 days. This period allows you time to solve any problems from the levy or to make other arrangements to pay. After 21 days, the bank must send the money, plus interest, if it applies, to the IRS. (Note: If you own Real Estate or have a Small Business and IRS has sent you an Intent to Levy Certified Mail, it is best to contact an Enrolled Agent or a Tax Attorney as soon as possible).

You can get a Levy released prior to full payment. There are conditions.

Innocent Spouse

In some cases, you may not be responsible for taxes, interest and penalties on a joint income tax return.

Quarterly Estimated Tax Payments

We can help you determine the amount you should send to IRS each quarter.

IRS received a W-2 and Filed Your Taxes For You.

Contact Us as soon as possible. You first action would be to file your own tax return. Tax Law comes into "play" here. It is recommended that you hire a professional tax professional to complete these tax years.

Penalties and Interest

In some cases penalties and/or interest can be reduced and even eliminated. Form 843 is used to request Abatement. There are circumstances that can reduce penalties and/or interest.

A penalty is charge when you do not pay your tax on time. Initially, the penalty is one half percent of the unpaid tax for each month or part of a month you didn't pay your tax.

Interest is charged when your tax is not paid on time. Interest is computed from the due date of your return (regardless of extensions) until paid in full. Interest compounds daily.

Protecting Your Assets From the IRS

If you have not filed back taxes for several years and you feel that you will owe - take actions to protect your self in advance.

Below are a tips (check with your attorney before implementing - Tax evasion or tax fraud is a serious offense

Transfer ownership of assets to a corporation
Put property into a Limited Family Partnership
Transfer property to a trust
Put life insurance policies into an insurance trust
Fully fund your pension plans and 401(k)
Transfer property to family members

Again, filing your back taxes would be an important part of your plan - If you have sizable assets, contact your attorney for a workable plan. But first, reduce the fees you would have to pay your attorney and allow us to complete your back taxes.

510 264-0502 - License No. A028256