Haven’t Filed Tax Returns? How to Get back in step with the IRS/State. How Many Years Do You Need to File?

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The focus of our firm is representing taxpayers in Rochester New York with tax issues.  Most people that do not file tax returns is due to the fact they cannot pay the tax.  But other times life happens, and they can get their records together.  Unfortunately, not filing is a big deal for the IRS and carries significant penalties and interest.  Not only does the IRS have a penalty for failure to file but also an additional penalty for failure to pay.  These penalties can add up over time to 47.5% of the tax liability.

The good news there is a way to get back in compliance and the good graces of the IRS.

Steps;

  1. Delinquent Returns – IRS policy statement 5-133, (Delinquent Returns – Enforcement of Filing Requirements) provides a guideline that the taxpayers must file 6 years of back tax returns to be in good standings.  It also allows for a deviation from this guideline with IRS management approval.
    1. If you own both State and IRS taxes – File the State first, once the tax is assessed (tax return processed by the State) then file the IRS return.
    1. This will be helpful in the resolution phase.
  2. Compliance – With 6 years of back tax returns filed, the next step is to be in compliance with current taxes.  This involves the following;
    1. If a W2 employee – sufficient taxes are being withheld from your paycheck.
    1. If you are self-employed, you are making estimated tax payments each quarter as required.
    1. For businesses – The payroll taxes are deposited on time each period.
    1. All future tax returns due are filed on time.
  3. Resolution Plan – Now you need to work out a resolution plan.
    1. Rule of thumb you’ll want to work the outstanding Stare taxes first and then the IRS taxes due.

Working with a tax resolution professional like our firm we can work with you to evaluate the most advantage solution for your tax issues.  If you have any questions about getting back in step with your tax issues in Rochester, New York or elsewhere, please feel free to contact me at (585) 210-7405 or at Jason@585tax.com.

Jason Zukoski

Integrated Tax Resolutions / 585Tax

395 Helendale Rd.

Rochester, NY 14609

Ph. (585) 210-7405

jasonzukoski@integratedtaxresolutions.com

www.integratedtaxresolutions.com  / www.585tax.com

Rochester, NY • Buffalo, NY • Syracuse, NY