Avoiding Unfiled Tax Returns – Patrick Cox Tax Masters
End of Year Things to do to Avoid Unfiled Tax Returns
The turkey has either been thrown out or is now taking on a peculiar aroma in the back of refrigerators all over the US. The college football Bowl Championship Series has entered its annual question, irritation, and complaint period. 2009 is only two weeks away. In Houston, it was 34 degrees this morning and it snowed last week.
Being that I’m in the IRS tax relief business, when the weather turns cold and the year nears an end, my thoughts turn to paying taxes and the potential need for tax representation. I thought I’d mention just a couple of tips for things you can do now to make sure you’re ready to file your 2008 taxes and avoid the back tax trap.
Organize Receipts and Records Now
One of the most important things you can do to protect yourself from the IRS is to keep good records and keep them organized. As a tax representation firm, we get to know lots of people with lots of difficult and complex tax problems. We’ve realized from watching the tendencies of our thousands of clients that keeping good records helps taxpayers do more than save time. If a taxpayer has all records together, he or she is much more likely to file on time and avoid getting into a situation where he or she winds up with unfiled tax returns. As the year winds down, taxpayers need to collect and organize all relevant receipts, finalize mileage and log books, and buy new materials for keeping good tax records in 2009. This is a fairly simple exercise that can take as little as 30 minutes and can save you days of legwork and looking through a jumble of records in March or April.
Resist the Back Tax Trap and Unfiled Returns
Filing tax returns on time is critical to staying out of the IRS collections process. And the worst part about missing one filing deadline is that it makes it easier to miss the next, and the next, and the next, particularly if you think you owe more than you can pay. If you have one or more unfiled tax returns, I strongly encourage you to file those unfiled returns before the IRS contacts you. And if the IRS sent you notification that they have filed an SFR (substitute for return) on your behalf, you need to act immediately to file that past-due return so you can claim the deductions you have coming.
Tax Masters Solves Tax Problems
At Tax Masters, we don’t judge you for any past mistakes or decisions. We will listen to you describe your tax problem and let you know exactly what you need to do to resolve it. We are particularly good at filing past-due tax returns to get you back into compliance with the IRS, and in most cases, save you money. Call us today if you have unfiled tax returns so we can give you the tax relief you need. And get your receipts, logbooks, and documentation together now before the end of the year. At the very least, it will save you time in the spring. But more important, a little planning can keep you from sliding into the back tax trap with unfiled tax returns.
Until you need us,
Patrick Cox Tax Masters
Hey Pat,
I have opened a new company this year. I didn’t make any revenue, I only had expenses. Do I still have to file a tax return this year, or can I wait until next year so I can apply the expenses?
Speaking of keeping good tax records, how long should someone keep their tax records? I have heard everything from 3 to 7 years. What advice can Taxmasters give me in regards to this matter? Thanks.
I do not currently have tax problems, though it always feels as though they are nipping at my heels. Do you provide tax services for those who have no current or past problems with the IRS?
Rudy,
You should always file a tax return every year. You can contact a tax CPA to discuss your options for carrying losses forward or back, but you still must file a tax return every year to avoid IRS problems. As I stated above, having one unfiled tax return can lead to more and before you know it, you’re in the back tax trap. File that return.
Patrick Cox, Tax Masters
Mike,
Good question on how long to keep tax records. The general rule of thumb is to keep all records for filed tax returns for three years. However, you should always keep a copy of the actual tax return. Also, if a depreciation goes over several years, make sure you keep all records for that depreciation for three years after it’s included on your last tax return. One thing is certain. It’s always better to have the records than not. My advice is to err on the side of keeping too much rather than too little. With IRS tax relief cases, we always have to get the taxpayer into compliance before we can work on any sort of negotiated settlement. From experience, I can tell you that not having good records can really hurt you, especially if you have several years of unfiled tax returns. The lesson, keep good records and keep them at least three years and more if your circumstances call for it.
Patrick Cox, Tax Masters
Jennifer,
Tax Masters is a tax representation firm that helps people with IRS tax relief, tax settlements, unfiled tax returns, tax audit defense, and other IRS problems. This is not a CPA firm in the sense that we aren’t a tax prep business, even though we prepare past-due and unfiled tax returns for our clients. Please contact a tax CPA or local tax professional if you need assistance with preparing or filing current returns or if you need tax advice.
Patrick Cox, Tax Masters
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sharon
http//www.autoloans101.info
I work for a “very very” large Aerospace company, we sell and aircraft every 16 days to the United States Military averaging between 80 million to 110 millions dollars per copy this money comes from the American tax payers to purchase these wonderful flying machines. What I really need from you is to understand your language on how you and your company understand how congress influences the IRS to enforce the “Tax Laws” they see proper. As we both know the rules are a gauntlet yet to be fully understood. If you services can truly help people then I would like to get be involved with you and your company. I believe you to be an honest person and your company advertises a solution to the “Tax Problems” which I have. I have to assume the you can only provide a band-aid for this wound because truly this is no solution, if there is then companies like yours would not exist. In either case I assume you to be an honest comapany but not the company to represent me. But I beg your pardon and forgiveness for expressing it that way. I do not intend to avail myself of the privilege of the constituent to speak plainly to an honest company for the purpose of insulting or wounding you. Your understanding of the constitution and the 16th amendment are different than mine, I believe a company with your talent to recognize there is a profit to be made from helping Americans understand the Tax laws in this country could better be served more as a public servant. Make no mistake I am not a man from the backwoods, I keep up with Washington and read very carefully all proceedings of congress. You are a company who wields the power to understand the IRS and the more honest you are the more dangerous you can become with this type of knowledge. “The power of collecting and disbursing money at pleasure is the most dangerous power that can be intrusted to man, particularly under our system of collecting revenue by a tariff, which reaches every man and woman in the country, no matter how poor he/she may be, and the poorer he/she is the more he/she pays in proportion to his/her means” this is the way I believe. If you believe you can truly help me then I will fully employ you. I know hundreds of people to included co-workers who have over $100,000 year incomes who have falling into the economic distress from the IRS. Can you truly help us?
PS.
The underground economy is a market consisting of all commerce on which applicable taxes and/or regulations of trade are being avoided. The term is also often known as the underdog, shadow economy, black economy or parallel economy. In modern societies the underground economy covers a vast array of activities. It is generally smallest in countries where economic freedom is greatest, and becomes progressively larger in those areas where corruption, regulation, or legal monopolies restrict legitimate economic activity.
Sincerly
Bobby,
Thanks for contacting me and taking the time to send this message. I understand your position and your hesitation.
First, TaxMasters can solve your tax problem. We employ former IRS agents who know the law and who understand how the IRS works. The exact solution to your problem depends on your specific situation and the severity of your tax issue. Please understand that if you have the money to pay the tax you owe (salary, bank accounts, 401k, Social Security benefits), you will wind up having to pay it. Proving to the IRS that you cannot pay a tax debt is a drawn-out, invasive process. They leave no stone unturned in looking for revenue. If the government is going to settle a debt, they will take their time and exhaust all possible avenues for collecting what you owe.
Even so, if you sign up with TaxMasters and stick with us through the entire process, you will come out of this situation back in compliance with the IRS and much better off than you are now, having put your tax problems behind you. In the National Taxpayer Advocate’s Annual Report for 2008, which was just released, the National Taxpayer Advocate calls yet again for continued tax reform, simplification of the Internal Revenue Code, and flexibility in dealing with taxpayers having trouble meeting their tax obligations due to current economic hardships. While it’s good that the IRS has a watchdog, it’s also disheartening to see the same complaints about customer service and the apparent lack of empathy that some IRS agents apparently exhibit in dealing with collecting taxes.
Please understand that there is a solution to your tax problem and TaxMasters can help you regain compliance and get out of the trouble you are in. We are experts at resolving tax issues and we will help you. Call us this afternoon at (866)-694-4018. One of our tax consultants will answer the call and will talk you through your options. I encourage you not to put this off another day. We can help. Call us. What do you have to lose?
I have not filed my taxes for the the past 7 years. I just got married and we filed joint tax returns and are due a refund. Is the IRS going to find my 7 year span and keep our refund? I want to get caught up on my returns, I have done my taxes, just never sent them in. Most of the returns i have been owed a refund, but some I owed them. What can I expect?
Wes,
The IRS has improved its ability to identify unfiled returns. It is absolutely imperative that you file those returns as soon as possible. You will face some penalties for each past-due return and interest on years when you owed. Regardless, it’s always better to beat the IRS to the punch, especially when dealing with the stresses of a new marriage. If I were in your shoes, I’d resolve this in short order. Call us to talk over your options. (866)-694-4018.
[...] want to revisit what I’ve coined the back tax trap, discussed previously in the post titled Avoiding Unfiled Tax Returns – Patrick Cox Tax Masters and in Unfiled Taxes and Back Taxes – The Back Tax [...]
I never filed 2005 taxes I know I would have had a refund from that year can I still file and get that refund?
Jake,
First, it is imperative that you file all past-due returns as soon as you can, preferably before the IRS contacts you about them or files an SFR on your behalf. To answer your question, you have until April 15 this year to file a 2005 return and collect any associated refund (the IRs only assesses penalties on filing late if you owe taxes). After three years, a refund associated with a past-due tax return is forfeit to the US Treasury. Under this rule, you are not eligible for any refunds associated with unfiled returns for 2004 and before. As soon as April 15 gets here, 2005 will be forfeit, as well.