In elementary school, kids come up with creative excuses why they did not bring in their homework. "My dog ate it" or "It was stolen by invisible space aliens" might be given as a reason why something was not turned in on time. Don't try those excuses with the IRS! Don't blame divorce, business failures, or family troubles either, because except under extreme circumstances, they won't register with the taxman.
If you have unfiled tax returns, you need to file at least the last 6-7 years. Although under law IRS could make you go back and file that return from the late 1970's when you were a disco diva or urban cowboy, the good news is that as a matter of policy they don't! In most cases, filing the last 6-7 years will be OK and IRS will consider you in compliance. So don't procrastinate any further, file the returns if you made over the standard deduction and personal exemption amounts during those years or were self-employed.
People delay filing returns for 3 main reasons:
1. They are afraid or embarrassed;
2. They have lost the records or don't know where to go to get the returns done; or
3. Some crackpot advised them income taxes are bogus and that they don't have to file.
Don't be afraid of filing, be afraid of what will happen if you don't file. IRS could file for you and you might owe more than if you would have done it yourself or IRS could send somebody out looking for you. It is not a crime to owe IRS money, it can be a crime under some circumstances for not filing a tax return or a false return.
If you lost your records relax, in most case you can get all your income data from IRS so that you can prepare the tax returns. If you had deductions, you may have to dig those up and organize your records.
IRS is a legitimate government agency and they can and do enforce the laws on filing a Federal Tax Return. It sounds good when somebody says IRS is a fraud, but it is a lie. We all have to pay taxes.
If you havent't filed in years you can call the IRS at 1-800-829-1040 and after lots of time on hold and maybe a few transfers, you will eventually get somebody who can help you get your W2 info mailed to you. Your local library may have old tax forms and tax books to help you do the returns. You can do it yourself, but I suggest getting a professional to help you.
Don't go to some guy or gal advertising on TV with a big company. Go to a professional person or small firm where you can talk one on one with a CPA, Enrolled Agent, or Tax Attorney. It doesn't have to be a local person, you could hire someone across the country. With email, fax, etc. you can avoid some embarassment of going to a local tax pro if you live in a small town by hiring someone far away. But don't hire somebody without checking them out. Read any contract they send you. Don't part with your hard earned money unless you are sure of their qualifications.
Members of the following organizations must adhere to high ethical standards and might be a good choice for you: National Society of Accountants (NSA); National Association of Enrolled Agents (NAEA); or the American Insitute of Certified Public Accountants (AICPA). You might also look for professionals holding the Accredited Tax Preparer (ATP) or Accredited Tax Advisor (ATA) designation.
Don't let your cousin Jimmy do your returns or that nice neighbor who says he is an expert. I have seen more screwed up returns done by friends and relatives than I care to remember.
Get peace of mind, file those returns. You may owe money but you may have a refund waiting. Guess what, if you file the return more than three years after the due date; you lose the refund!
Here are some sites that can give you more info:
www.irs.gov
www.naea.org
www.nsacct.org
www.exirsman.com
James Robert Coleman, E.A., A.T.A.
Enrolled Agent & Accredited Tax Advisor
Member: National Association of Enrolled Agents
Former IRS Revenue Officer, GS-11
http://www.exirsman.com
Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More
Import duties continue to be significant elements in the cost... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
Once a year Canadian taxpayers are required, by law, to... Read More
As a small business owner or self-employed person, one of... Read More
Own residential rental properties? This article discusses how income from... Read More
With gas prices at an all time high before Hurricane... Read More
Someone once said, 'the best way to calculate your taxes... Read More
Strategic planning throughout the year results in a minimal tax... Read More
As a small business owner, it's wise to familiarize yourself... Read More
Many small businesses complain when confronted with the expense of... Read More
Six Urban Myths ? Taxation"I am proud to be paying... Read More
With the massive losses caused by Katrina, the economy of... Read More
One way to maximize your business profits is by reducing... Read More
April 15 - The most dreaded day of the year... Read More
Your days as an entrepreneur and businessperson are consumed with... Read More
Should I take wages or dividends from my privately owned... Read More
Many Americans believe that an IRS debt is a debt... Read More
As tax time approaches, many home-based business owners begin completing... Read More
Whether helping the kids with a down payment on their... Read More
The Internal Revenue Service is reporting that the difference between... Read More
The federal tax code is complex. This complexity generally arises... Read More
It's a major fear for most Americans: A notice from... Read More
The electronic transaction ordinance defines the certificated copies in which... Read More
In trying to comply with tax laws for your e-business,... Read More
disinfecting cleaning services Wilmette ..Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More
As a small business owner or self-employed person, one of... Read More
Import duties continue to be significant elements in the cost... Read More
How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More
Beware of advertisements that claim to settle tax debts for... Read More
The knock on the door from a Tax Inspector is... Read More
In a past article I relayed the plight of the... Read More
Donating your used car to charity is a win-win situation;... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
Hit a big one? With more and more gambling establishments,... Read More
As a gentleman was leaving my class recently, he wanted... Read More
Excerpted from the new book, "How to Do Space Age... Read More
Q: I was contacted by the city tax collector to... Read More
It's a major fear for most Americans: A notice from... Read More
NOTE: This is the first in a series of 5... Read More
As everyone in the U.S. knows, we have just passed... Read More
Marketing is a necessary expense in running practically any business... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
Choosing the right tax preparer for your business is a... Read More
"What we've got here is a failure to communicate." ... Read More
It's that time again, the April 15 tax deadline is... Read More
Six Urban Myths ? Taxation"I am proud to be paying... Read More
Many small businesses complain when confronted with the expense of... Read More
If your like many, you don't always understand what people... Read More
Your days as an entrepreneur and businessperson are consumed with... Read More
Tax |