Gary Bode, CPA: for a free initial phone consult on any taxation issue please call 399-2705.
The IRS eventually comes calling if you don’t file tax returns. But, I’ve seen one case where this took six years! Please note we have a virtual office to handle your un-filed back tax returns wherever you or your Company reside.
Our Goals?
To bring you into IRS and State compliance as quickly, cheaply and stress free as possible. And, sometimes our fees are less per return than if we had prepared them on time.
How does the IRS find you?
Remember, the IRS collects information about you and/or your business from employers, banks, brokerage houses etc. So their databases just cross check income to filed tax returns. Most States provide similar information to the IRS too.
When do Clients Call Us?
Usually after receiving an IRS Notice. Such notices kindly demand a figure calculated through a “substitute” return, using the information mentioned above. But they don’t factor in legitimate deductions and credits. Then they add penalties and interest. I can’t recall a back tax case where the inital amount demanded by the IRS didn’t drop when the actual returns are filed.
Does the IRS Expect to Collect the Amount on Their Notice?
Probably not. Frustrated clients tell us IRS personnel encourage them to submit properly prepared returns. This almost always renders a lower figure.
Can Un-filed Tax Returns Generate a Refund when Actually Filed?
Yes, absolutely. And often do. And not just because we know all the loop holes either. Sometimes clients believe you don’t have to file if have a refund coming.
How do we get all the Information Needed for Filing?
Many un-filed tax return clients have missing documentation. CPAs can re-construct data to prepare accurate returns. Usually without much work either. No worries.
Can the IRS press Criminal Charges for Non-Filing?
Yes. But I’ve never seen this happen. Generally, they just want you to be compliant and current with your tax obligations. The IRS prosecutes very few cases on just tax evasion grounds alone.
Does the IRS automatically Audit Late Returns?
Well it depends on what audit means. But I’m sure they carefully check submissions of late tax returns, especially if there are multiple years. We look for red flags and provide an explanation on a supplemental schedule. We assemble your documentation and our notes carefully in case they ask about anything.
Will you have to Deal with the IRS or your State?
No, we run all that interference for you. And we don’t want you opening up a different can of worms by incriminating yourself!
What Steps are Commonly Involved?
- We listen carefully to your side of the story.
- We don’t assume the IRS demand is correct.
- We examine all the IRS correspondence.
- We look for possible criminal implications in case we need an attorney to help. This is unlikely, but we cover the bases.
- We get Power of Attorney to represent you with the IRS. This allows us to run interference for you and reduce the stress these situations create. Same with your State.
- We request more time with the IRS to work on your case. Generally, we can delay levies and garnishments, at least for a while. Same with your State.
- We explain everything to you in English, not Financialese.
- We take care to not open other tax issues. Clients sometimes incriminate themselves in areas that weren’t initially of interest to the IRS. Ouch!
- We have a direct portal into the IRS system. Once we obtain a Power of Attorney for you, we examine all the IRS documentation has on you.
- We examine all your documentation.
- We identify the key issues.
- We file un-filed returns.
- We amend incorrect past returns.
- We determine the correct amount you owe, which can be a refund.
- When appropriate, we try to get an IRS Agent assigned to your case. Even simple issues seem convoluted in the IRS automated collection system from overlapping notices.
- We request abatement of penalties.
- We help structure payment to the IRS if you actually owe taxes.
What if I do owe Back Taxes?
We check to see if the IRS will accept less than what you through an Offer in Compromise. This infamous “pennies on the dollar” technique may do just that, if you qualify. If you don’t qualify now, we look at what you would have to do to become qualified.
How can I pay the IRS?
We help structure payments through Installment Agreements or Payroll Deduction Agreements. A Hardship Settlement might delay payments, until your financial position improves in the next few years.
Need a free initial phone consult? (910) 840-3858
