Common Problems with Unfiled Tax Returns
People frequently lose their old W-2s and 1099s. Or maybe their business or home suffered severe flood or fire damage and the records were altogether destroyed.
In those circumstances, there are actions you can take, including:
- Income Information Request. For the years in question, you’ll want to request W-2 and 1099 income information directly from the Internal Revenue Service (IRS). Those IRS reports will indicate the minimum gross income for reporting purposes.
- Income Reconstruction. An IRS Form 4852 Substitute W-2 may be useful in helping to claim your income for the given period.
- Reporting Tax Year. The IRS forms used must be for the tax year being reported. If the taxpayer is filing for the 2007 tax year, for example, then the official IRS 2007 tax forms must be used to report that income
INFORMATION RETURNS PROGRAM: Don’t Hide from The IRS
You might believe that you are off-the-hook if it has been a year or more since your return was due and you still haven’t been notified of a problem by the IRS. But that delay is not unusual; it typically takes the IRS a couple of years to address taxpayer delinquency. Make no mistake, IRS computer technology is quite sophisticated and successful at ferreting out delinquent taxpayers. Consequently, the odds are strongly against unfiled tax returns going unnoticed by the government.
Here’s how the government handles the missing return issue:
- The IRS computer Information Returns Program (IRP) matches the payer’s (employer’s) reported W-2 information or 1099 information for other income with the returns that the taxpayer filed.
- When there is a W-2 issued or 1099 issued, but no filed tax return from the employee-payee, then the case is automatically kicked over for taxpayer delinquency investigation.
- Automated notices are then sent to the taxpayer’s address on record with the IRS. If that doesn’t result in direct communication with the taxpayer, then an IRS agent will begin tracking the taxpayer down.
- The IRS may send a notice explaining to the taxpayer that he or she has 30 days to file all previously unfiled returns. When records are lost or missing, 30 days is not much time to comply.
- An IRS agent may come knocking on taxpayer’s door, asking that he or she file the returns with the agent directly as soon as possible.
- The most serious situation occurs when the IRS sends a criminal investigator to the taxpayer’s location. If you are visited by an IRS criminal investigator, then contact the Pew Law Center immediately. You definitely need legal representation and advocacy.
How Can a Tax Attorney with the Pew Law Center Help You?
The odds are in your favor by coming clean, rather than hiding and hoping the IRS doesn’t catch up with you. Because the government wants to give taxpayers an opportunity to come forward voluntarily and accept responsibility for unfiled returns and unpaid taxes, the IRS typically will refrain from extreme punishment like jail as a matter of policy. That is not so when the IRS has to actively search for the delinquent taxpayer and demand compliance. In that instance, the government is looking at what could be considered intentional tax evasion.
Here’s how we can help you get out of trouble with the IRS:
- Avoid Criminal Sanctions. To avoid punishment and criminal sanctions, the Pew Law Center prepares your delinquent returns and gets them filed. Phoenix tax attorney Lawrence ‘D’ Pew takes over communications with the IRS. You will be able to sleep at night again!
- Dynamic Legal Solutions. We have dynamic legal solutions to every client’s unique tax problem. We have the knowledge and experience necessary to resolve problems associated with years of delinquent unfiled returns.
- Power of Attorney to Act. When you have Phoenix tax attorney Lawrence ‘D’ Pew advocating for you, he’ll use a Power of Attorney to obtain your income information from the IRS and complete your unfiled returns. You may even get a tax refund as a result!
- Stabilizing Tax Strategy. Our Phoenix tax attorney wants the best possible tax outcome for you and your family. To accomplish this goal, the Pew Law Center will develop a tax strategy that stabilizes your financial picture, protects your rights as a taxpayer, and resolves all of your problems with the IRS, once and for all.
Call Us Now for Advice and Advocacy.
Need more information? Please contact our offices or call 480-745-1770 to schedule your FREE VIP Tax Relief Consultation with the Arizona tax attorneys at the Pew Law Center.