UNFILED TAX RETURNS

If you have unfiled returns that need to be filed, the IRS won’t consider you ‘tax compliant’ until your required tax returns are filed. Going forward, you’ll want to make sure that you file each of your tax returns on time (without owing any taxes) as they become due so that you can maintain an IRS resolution program, and so that you avoid unnecessary ‘Failure to File’ (and ‘Failure to Pay’) penalties.

Which tax returns do I need to file?

The IRS generally requires the most recent 6 years of individual tax returns to be filed to be considered ‘tax compliant.’ Once they’re filed, the IRS considers you eligible for a resolution, provided that you’re also sufficiently withholding taxes for the ‘current’ tax year.

It’s not uncommon for the IRS to file tax returns for you if you didn’t file your tax returns timely. These are called ‘Substitute For Returns’ (SFRs). The IRS uses the income information that they have on file for you to prepare and assess the returns. The IRS doesn’t allow credits, deductions/exemptions when they file a tax return for you, so it’s usually a good idea to file your original tax returns when the IRS has filed SFRs, with some exceptions.

What if I don’t have my documents to prepare my tax returns?

We can help you get the income information that the IRS has on file for you. The first thing that we do for all new clients is to perform a transcript analysis with the IRS. This includes us ordering your Wage and Income transcripts from the IRS that can help with tax return preparation.