Are you delinquent in filing federal tax returns? This is not simply noncompliance – in some cases it could be considered criminal.
If you fail to file a tax return, it is possible that one will be generated for you by the IRS using information reported on forms such as Form W-2, Form 1099-B, and Form 1099-MISC. This is known as a “substitute for return”. If this happens, you won’t have the benefit of being able to claim deductions or credits, and the tax you’ll owe on this substitute for return will be higher. Since the IRS hasn’t heard from you, they will likely begin collection action, including income execution (wage garnishment) and levies (freezes) on your bank accounts. And yes – in some cases, the IRS will conduct a criminal investigation.
Many non-filers are simply procrastinators, overwhelmed with life, or both. If you haven’t filed a federal tax return for a given year or years, please give us a call. We can help you get current fairly quickly in most cases.