Non-filers — people who haven’t filed a tax return in years — probably know they’re pushing their luck. Yet, many stay in the tax shadows. Other non-filers yearn to be set free, or are willing to explore getting up to date. However, they fear the tax debt, fear the penalties, fear losing assets, don’t know the options, and are afraid of talking to the IRS. Some are sure the IRS will owe them. Fortunately, expert help and confidential advice is available to find out. In fact this article lists best practices and steps to be set free with the least hassle or time pressure. Most taxpayers can qualify for an affordable payment plan; or may obtain non-collectible status; or could settle with the IRS for less— perhaps a lot less — than they owe. For a free initial phone consult, call 352- 317-5692.
Why Non-Tax-Filers Might Seek Help
Non-filers may fear that the IRS is about to catch up with them. They may be right! Every year, it gets harder to fly under the radar. The statute of limitations for debts only works for a lucky few. Meanwhile, the IRS is actively searching public databases to identify federal tax ‘avoiders’. According to one industry source, the IRS has 194,000 new collection cases ready to launch this hot July.
Non-Filers Free Initial Phone Consult
There is help and hope for taxpayers who want to get straight while saving money, all without talking to the IRS. This help link is for a free, confidential initial phone consult with Jim Payne, CPA, owner of Tax Rep in Gainesville, Florida. The basic steps you need to follow to get free from the non-filer swimsuit — with or without Payne’s help— are listed below.
Steps to Get Free From the Non-Tax-Filer Abyss
What should you do to get out of this mess? Here are the six steps you should follow:
- Prepare the missing returns for only the last six years. The IRS’s internal rule is to normally only look for the last six years. Also, if you are not in a community-property state, don’t forget to consider Married Filing Joint vs. Married Filing Separate.
- If you can’t fully pay the total taxes you owe, calculate your Reasonable Collection Potential (RCP) to figure out your options and plan strategies to clean up the debt at the lowest cost. This is not a do-it-yourself project – get help.
- If state income taxes are also required, consider whether you should file these returns first. The IRS will take state tax liabilities into consideration when it comes to determining how much of your monthly income should be paid to them (in an offer-in-compromise settlement).
- File the federal returns.
- Make all your current year estimated tax payments, if required. Make sure your employer is withholding the correct amount if you are an employee. The IRS will not make any deals unless your current year payments are up to date.
- Depending on the strategy that you developed in step 2, it’s now time to talk to the IRS (or have me talk to them if I represent you) about your ability to pay and work out a deal that will get you out of their crosshairs. This could be a payment plan, an offer-in-compromise, or being classified as uncollectible.
‘I’m a Non-Filer. Should I Wait or Grasp the Lion’s Tail?’
Your impulse may be to wait until they catch you. This may defer the reckoning for another year or two, but chances are they are going to get to you. It’s better to show your good intentions up front by getting this taken care of before they begin collection actions.
Call or text (352) 317-5692 to ask Tax Rep Jim Payne, CPA, for help getting to the non-filer option that will work best in your unique situation. Free initial phone consultation.