We find that taxpayers do not file tax returns having unfiled taxes for one or more years for various reasons and the problem can become overwhelming creating back taxes and tax problems. Missing all or a portion of their records, personal hardship and/or neglect are one of many reasons people fall behind in filing their taxes. Fortunately, there are ways to approach the problem of unfiled returns.
The IRS maintains a file going back numerous years of all W2′s, 1099′s and 1098′s (mortgage interest paid) filed in the name of individual taxpayers. We can determine certain facts from Master File Transcripts, available for those years where the IRS has prepared a Substitute Return. These ‘records of account’ provide Adjusted Gross Income, Taxable Income, Tax, Number of Exemptions, Filing Status and Self Employment Tax. When we take on this kind of case, we will assist in re-filing your returns and our negotiations will be based on our more favorable returns for your benefit.
We can prepare past returns using various substitute sources when there are missing records. Those returns should be filed as soon as possible in order to avoid accumulated compounding interest. Also, it should be noted that if returns have not been filed in the most recent three tax years, those returns should be prepared immediately in order to claim any refunds that may be due.