Avoid Steep Interest and Penalties From Accumulating With a Delinquent Tax Return Checklist

If you've been lucky so far that your unfiled delinquentbulletproof. To survive this battle, you need the
tax returns have avoided the IRS's attention, your luckprofessional help of a good tax preparer, tax attorney
is about to run out. The IRS's increased enforcementor a Certified Tax Resolution Specialist. If you want to
means that every unfiled return will soon be comingtake a preliminary stab at creating the unfiled tax
back to your door with as much as 25% penalties,returns so your tax attorne, the IRS has downloadable
interest plus the prospect of prison on federal felonyforms and instructions going back to 1980 on their
back tax evasion charges. So if you've got aWebsite.
delinquent return, act now on the eight easy steps inIf you can't get the forms for your unfiled delinquent
this checklist and you'll be able check the IRS off yourtax returns online, you may have luck going to the
worry list forever.library (call the reference desk first) to see if they
Step 1) Don't panic, but head with all deliberate speedhave the IRS forms you need from the previous
to your nearest tax attorney or Certified Taxyears. If they don't have the late tax return forms for
Resolution Specialist for a tax relief consultation. Whenthe years you need, contact a tax attorney or
you have an unfiled tax return, it weighs on you like aCertified Tax Resolution Specialist because they are
disease. Every late return eats at you, year after year,virtually certain to have the unfiled delinquent tax return
compounding fear until you feel like you're going toforms for the years you need.
explode. You need to tell your tax attorney how manyStep 5) Verify that the IRS and you agree on the
years your unfiled returns have been ticking like a timeunfiled tax returns. Once you have prepared the late
bomb and what (if anything) the IRS has written toreturns yourself (or had a preparer do it), have a tax
you.professional check your version against the IRS's
If your late tax returns go back for a number of years,estimation of your back tax debt. Sometimes the IRS
you could be easily looking at many thousands ofmakes simple mistakes on their Substitute For Returns.
dollars in back taxes and up to 25% in penalties andThe IRS may not know if you've had kids in the interim,
interest. A call to a tax professional is a financiallyor that your tax situation has changed substantially.
shrewd move because the return on investment can6) Send your unfiled tax returns to the IRS the right
be huge, often slashing or even eliminating your debtway. Any late tax return is too important to send
for some or all of your unfiled returns.electronically. Go to your local IRS office and hand
Step 2) Start with the last year you filed taxes. Godeliver each return and get a reciept. If that doesn't
back to the last year the IRS got your taxes. You'llwork for you, then send each return separately via
need figures from that return to fill out those unfiled taxcertified mail and separated by a few days.
returns.Also note if you are told that your return is in the
Step 3) Make sure you have all the documents thecollections or SFR (Substitute For Return) office. Be
IRS does. Go to your local Social Security office to getsure to get the proper address and sent each
copies of all the W-2s, 1099s and other documents forseparately to that address.
the years you have unfiled tax returns. The IRS mayStep 7) Send in each unfiled tax return with a check
have gotten a document that you didn't and this couldfor $5. Your interest and penalties for each late tax
be the source of some of your problem. For example,return compound with every day of non-payment (as
you may have worked with an out of state client andmuch as 25%). Stop that clock as soon as you can by
that may have meant you needed to file a tax returnfiling those delinquent returns immediately.
in that state. A good tax attorney or Certified TaxStep 8) Have your tax attorney devise an IRS
Rescan help you recreate your late tax return paperpayment game plan. Can you pay your unfiled return
trail.debt in full? Should you? Should you try for an Offer In
4) Figure out what your original tax liability would haveCompromise? Should you try to get an IRS payment
been. Most tax attorneys and Certified Tax Resolutionplan for your back taxes? Expert help can help you
Specialists work with CPAs, Enrolled Agents and otherdecide on the game plan that makes the most sense
professionals who can help you prepare your unfiledfor you.
taxes. Since you know for a fact that the IRS will beIf you follow these steps to solving your unfiled
examining these with a fine toothcomb, now is not thedelinquent tax return problem, you can find hope.
time for amateur hour.Working with a tax attorney or Certified Tax
These late returns will get the IRS's harshest scrutinyResolution Specialist is the best way you can get
so you shouldn't submit anything that isn't 100%many happier tax returns.