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IRS BACK TAX RETURN FILING

Probably the most common cause for a person getting into Tax Debt is that at some point in the past he or she found that they did not have the funds to pay their yearly tax liability, and not knowing what else to do, they just decided not to file at all.  Likewise, the next year comes and, having not filed their taxes from the last year, they make the same decision they did the year before - not to file.  And so, avoidance becomes the strategy, until eventually the IRS gets wise, and sends the person a letter demanding payment of numerous years' back taxes, plus penalties and interest. 

Frequently, when a taxpayer neglects to file his or her Federal tax return, the IRS will file a Substitute Filed Return for that taxpayer.  The drawback to this is that they only use the bare minimum information to assess the tax liability, not taking any of the taxpayer's potential deductions into account. This could lead to a much higher assessment of the tax debt than would actually be owed if the taxpayer had filed the returns personally, and taken advantage of all their allowable deductions.


Back Tax Return Filing

Making sure all your past tax returns are filed is the first step to any successful IRS settlement. If you need help filing back tax returns, why not take advantage of our FREE Consultation:

 

 

 

 

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FILING IRS BACK TAX RETURNS

It's never too late to file old tax returns. Indeed, filing is absolutely necessary to any attempt at making a tax debt settlement with the IRS. That is, the IRS will not accept any request for tax resolution unless they have all the taxpayer's previous returns on file.  If, for instance, a taxpayer wants to submit an Offer in Compromise or Penalty Abatement Request but missed a past filing or two, he or she must first send those missing returns in to the IRS before the settlement will even be considered.

The procedure for filing past due IRS tax returns is actually rather straightforward.  The taxpayer simply needs to obtain the proper forms (e.g. - Form 1040, Form 1120, etc.) for each year that is missing, and fill them out using the relevant information for those years.  In fact, the greatest obstacle to filing old tax returns is just getting beyond that strategy of avoidance and "taking care of business."

It should be noted that filing past tax returns DOES NOT mean that the taxpayer must send payment for the associated liability. After all, the point of making a settlement is so you don't have to pay the full amount. Instead, catching up with old filings is a matter of proper Compliance, and showing the IRS that the taxpayer in arrears is serious about getting the matter resolved. It also provides for a more accurate assessment of the liability.

For the taxpayer who is uncomfortable with filing their own tax returns, or isn't quite sure where they stand with the IRS, #1 Tax Relief offers a very efficient and affordable Back Tax Return Filing service.  We will complete your old returns quickly and accurately, including researching your IRS records (such as past W-2s or 1099s), and minimize your liability by taking advantage of all relevant deductions that you would have been entitled to during those previous years. Our Back Tax Return Filing is also an excellent compliment to the other resolution services we provide.