5 Reasons to File Delinquent Tax Returns: There?s Still Hope if You Haven?t Paid Your Taxes This Year
August 28, 2010 by admin
Filed under Prior Year Taxes
5 Reasons to File Delinquent Tax Returns: There?s Still Hope if You Haven?t Paid Your Taxes This Year
The April 15 tax deadline has come and gone. For the millions of taxpayers who failed to file legally required tax returns, tax help is available for those who act now! Even taxpayers who received an extension for filing are not granted more time for the payment of taxes owed and may need income tax relief.
The act of not filing your tax returns can lead to more significant financial problems in the long run. Not to mention, failure to file tax returns may be construed as a criminal act by the IRS, punishable by one year in jail and ,000 for each year not filed. Needless to say, it’s one thing to owe the IRS money, but another thing to potentially lose your freedom for failure to file a tax return.
The longer you put off dealing with overdue taxes, the more serious your IRS problems will be. So I recommend filing any tax returns that are due as soon as possible to avoid additional interest, penalties and potential IRS collection tactics, such as a levy on your bank account.
With the federal budget deficit for the current year expected to top .8 trillion, Americans can expect more tax audits and increased IRS actions. So anyone who owes back taxes will want to avoid becoming targets of aggressive IRS collection efforts that can financially cripple them for life.
Here are 5 reasons to file your delinquent tax returns:
1) You can go to jail for not filing your taxes
Even if you haven’t filed your tax return for one year - it is still considered delinquent and could be construed by the IRS as a criminal offense. Actor Wesley Snipes didn’t report more than million to the IRS and he was convicted of three misdemeanor counts of failing to file a tax return. Richard Hatch, who won the first season of CBS’s hit show Survivor, is in prison for failing to report million in prize money.
The IRS goes after those U.S. taxpayers who try to avoid taxes, and Average Joes as are just as likely as high-profile individuals to be targets of the tax-collecting agency. At every level, the agency has become increasingly aggressive in pursuing tax cheats. Are you willing to lose your freedom because you failed to file your tax returns?
2) You can incur a 25% penalty for not filing your tax returns
In this economic downturn, Americans may opt to not file because they don’t have the funds to pay the taxes owed. The best thing for taxpayers in difficult financial situations to do is file their tax return, pay what they can and work with the IRS to establish a payment plan that will keep them compliant.
Additionally, if there are any delinquent tax returns that are due, they should consider filing these returns as soon as possible to avoid the wrath of any potential IRS action, such as a levy on their bank accounts.
3) You can incur additional penalties for not paying your taxes
If you fail to pay your taxes due, you will incur additional penalties for failure to pay. Taxpayers who request an extension of time to file should keep in mind that this it is not an extension of time to pay. To avoid additional penalties, taxpayers should file by the deadline and pay as much as they can, even if they are unable to pay the entire amount due. You will still have a failure to pay penalty, but it’s much less. Then you can work with a specialized tax resolution expert to help you negotiate a tax settlement.
4) You can be subject to an increased tax bill if the IRS prepares your taxes for you
The IRS may prepare a “Substitute For Return” for delinquent taxpayers, in which they won’t be able to file for all of their personal exceptions or allowable deductions. Because these returns are filed in the best interest of the government, the only deductions they’ll usually see are the standard deduction and one personal exemption, subjecting them to a larger tax liability. So it’s important for individuals to file their 2008 tax return as well as any prior delinquent tax returns as soon as possible to save money and avoid significant long-term consequences.
5) You must have all prior tax returns filed to be eligible for income tax relief
All back tax returns must be filed before the IRS will even entertain any type of tax settlement like an offer in compromise or monthly payment plan arrangement. The good news is the sooner you take care of your delinquent taxes, the less penalties and interest you’ll owe.
I believe there’s a solution to every problem. For delinquent taxpayer, it’s never too late for to resolve your tax debt and avoid IRS penalties.
For more information on receiving income tax relief or help resolving back taxes, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.
Prepare Prior Year Taxes Now
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Late, Past-Due Personal Tax Returns
August 18, 2010 by admin
Filed under Prior Year Taxes
Late, Past-Due Personal Tax Returns
Do you have overdue or late personal tax returns that still need to be filed with the CRA?
Don’t wait any longer, and contact your local Canadian accountant, as there are many advantages to catching up with the taxman.
This article addresses the top 5 reasons to file your past-due or late tax returns:
1. Tax refunds by filing personal tax return
In many cases, you may be eligible for a tax refund, which you can only receive by filing your tax return. A tax refund may result because of RRSP contributions made, child care expenses incurred, large amounts of taxes withheld from your paycheque, and many other reasons.
In the 2009 year, many families are receiving a one-time payment for the Ontario Transition Sales Tax Credit, which is an Ontario tax give-away to compensate tax payers for the increase in sales taxes to 13% as of July 1, 2010 (HST).
So make sure you file your late, past due tax returns to collect your tax refund cheque.
2. Canada Child Care Benefit and Universal Child Care Benefit
The Universal Child Care Benefit (0 per month per child) and the Canada Child Tax Benefit are only paid to those individuals have filed their tax returns. Therefore, if you have children and haven’t received any UCCB or CCTB payments thus far, make sure you file your overdue tax returns. Likewise, CCTB payments may stop being paid to you if you have past due tax returns.
3. Minimize interest and penalties by filing late tax return
If you owe money to the Canada Revenue Agency, procrastination won’t help to reduce the amount you owe. In fact, interest will accrue at an annual rate of 5% and penalties can amount to 17% or more.
Therefore, if you owe money, please make sure that you file your past due tax returns to minimize any interest or penalties.
4. Applying for a mortgage or loan - late tax returns hurt
When applying for a mortgage or loan, the bank will want to see your latest Notice of Assessment to verify your income. If you don’t have that available, because of overdue tax returns, you may be out of luck for your next home purchase or loan.
5. Demand notice from the CRA for late, past due tax returns
The CRA will send a demand notice to file your returns, followed by an “Arbitrary Assessment”, if the returns aren’t filed. An arbitrary assessment means that the CRA will assess your return based on the information they have received, and will not provide for any deductions that you may be entitled to. In other words, an arbitrary assessment is the worst-case-scenario and results in an overstated tax balance.
Additionally, the Canada Revenue Agency has the power to garnish your wages for overdue tax balances, seize your bank accounts and even seize your property.
To make sure you don’t end up in a situation where the CRA is confiscating your property, it’s advisable to file your late, past due tax returns and seek the advice of an accountant.
Allan Madan is a Chartered Accountant in Mississauga, Ontario, Canada and Tax Expert in Mississauga. He assists his clients with accounting and tax return preparation. Allan has helped many of his clients catch-up for past due tax returns, making the process an easy and simple one.
To learn more about Allan, please see Accounting Firm Mississauga
For additional tax tips, please see 10 Best Tax Tips
Prepare Prior Year Taxes Now
Unfiled Income Tax Returns- Don’t Ever File Them!
August 16, 2010 by admin
Filed under Prior Year Taxes
Unfiled Income Tax Returns- Don’t Ever File Them!
Never send the IRS your unfiled tax returns. Why? Filing them without knowing your collection and return status could be costly.
If you’ve filed all your previous returns and don’t owe any money, and you can full pay any balance shown on this return, then you can file it now without a problem.
If there are other years not filed and you owe on any of them, or you owe on past years, you should find out your current status with the IRS collection division before filing. You or your power of attorney should get your record of account for many prior years.
The record of account will show the charges and payments to each year. It will also show if you filed or the IRS filed a return for you. If any of the years indicate that you didn’t file, the a return needs to be filed. But… WAIT… Not Yet.
If you have any unfiled returns that show up on your record of account, your payment plan, if you think you have one, is invalid! Make sure you are able to discuss how you will make payments to pay off all of the outstanding balances. The trick is to get all delinquent liability years included under one agreement. This will stop future collection action, assuming you file and pay your taxes, and make your monthly payment on time.
Calling the IRS will also determine if they are in the process of preparing a return for you. If so, they will have a special address for you to send the return to. This will prevent you from having to undo it later. Or worse, the rejection of your newly filed return.
So be prepared to discuss your current financial situation. It’s best to have your income and expenses on a monthly average basis calculated already.
Getting your record of account to verify what is under your social security number will not alert the IRS that you are delinquent. Knowing your current status with the IRS concerning your filings and payment history is essential.
When you are ready to file your unfiled returns and you are missing information, you can request a record of information sent to the IRS from third parties. This includes W-2′S, 1099′S, K-1′S, etc. You are also allowed to estimate amounts that you can’t calculate. There is an art to preparing unfiled returns. Make sure you have help from a tax preparer experienced in this area. I have made corrections to many poorly prepared returns that would probably have caused an IRS audit.
In conclusion… Do not file any unfiled personal income tax returns without first requesting a record of account from the IRS and making sure that you understand what has been filed, if the IRS filed it, and how you are going to present your arguments for paying back the liability.
You probably want to consult an expert advisor before you take any action in thesematters.
Joe Mastriano, CPA has represented thousands of taxpayers before the IRS over the last 25 years. He offers free advice on dealing with the IRS collection division. For additional free information about filing your unfiled late tax returns, visit our site at =>http://www.taxproblem.org/delinquent-returns.html
Prior Year Tax Preparation Online
Obama and Biden release tax returns ? Vice President still stuck in the Alternative Minimum Tax
August 5, 2010 by admin
Filed under Prior Year Taxes
Obama and Biden release tax returns ? Vice President still stuck in the Alternative Minimum Tax
Shortly after April 15 President Barack Obama and Vice President Joe Biden released their 2008 income tax returns. What these tax returns showed is that the President is not paying the Alternative Minimum Tax, but that the Vice President is still stuck in it, as he has been for several years. We had seen this when they made their prior year tax returns public during the presidential campaign last fall.
Vice President Biden’s income puts him and his wife in the “wealthy” category, as defined by the President – those individuals with incomes over 0,000. But with total income of 9K, just barely over that threshold, it may seem odd that he would be subject to the AMT. Unfortunately, our VP’s situation once again confirms that the Alternative Minimum Tax in its current form is not in any way related to the original AMT enacted 40 years ago. As it has for quite a while, it continues to hit “ordinary” Americans working hard for a living who just happen to be caught in its “sweet spot.” And that sweet spot continues to grow – currently over 4 million taxpayers and counting.
Why Biden in the AMT but Obama is not? As we’ll see in future articles, he is making just enough income, and has just the wrong level of itemized deductions, and it is the interplay of these two that does it. The President, on the other hand, with the substantial book royalties he is earning, had nearly million of income, at which level the “regular” tax is higher than the Alternative Minimum Tax.
Is there anything the Vice President can do about this? Of course there is - nearly everyone can reduce his/her/their AMT liability. In VP Biden’s case, his focus should be on timing his tax deductions in a more AMT-efficient manner. Especially with the higher tax rates looming on the horizon – remember that rich people like him will soon be paying the promised higher taxes – the Vice President easily could save on his taxes by doing some simple planning. All this would take is a little modeling with a tax software program to see how tweaking his deductions and moving them between this year and next year could have a direct impact on his Alternative Minimum Tax.
The tax returns for both the President and the Vice President were disclosed on the White House web site – www.whitehouse.gov.
George Bauernfeind is with AMT Individual - providing information on Alternative Minimum Tax Planning . He writes articles to help the tax payers to pay less Alternative Minimum Tax. He recommend to use Alternative Minimum Tax Calculator to reduce Alternative Minimum Tax.
Prior Year Tax Preparation Online
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Helpful Tax Tips For Federal And State Tax Returns
October 26, 2009 by admin
Filed under Tax Articles
Each year there are millions of Americans who prepare their own federal and state tax returns and even more individuals have their taxes professionally prepared. Whatever choice a taxpayer makes there are a number of important tax tips that everyone should know.
A W-2 or 1099MISC is needed to accurately prepare a federal or state income tax return. There is always a chance that a taxpayer may misplace these forms or for one reason or another the forms may not have reached them. For federal tax returns and most state tax returns a W-2 or a 1099MISC is required. Individuals who do not attach these items are likely to prevent their tax returns from being processed or cause a refund delay. The Internal Revenue Service (IRS) states that all taxpayer should receive their W-2 or 1099MISC forms before February 15th. Individuals who did not receive these items are encourage to contact their employer to determine why the forms have not arrived. Taxpayers who misplaced their W-2 or 1099MISC forms are encouraged to contact their employer right away to receive a copy. Taxpayers must do so because even if a wage or income form is missing a tax return is due on the traditional April 15th deadline or else late fees and penalties may be assessed.
Another one of the popular tax tips that taxpayers should know about is tax deductions. It is estimated that each year the American public loses millions of dollars from tax deductions that they were entitled to, but failed to claim. A professional tax preparer and a tax software program may prompt an individual to claim tax deductions that they qualify for. Individuals preparing their own paper taxes are more likely to miss tax deductions that they may claim. To prevent this from happening taxpayers are encouraged to research the most frequently overlooked tax deductions to determine which deductions they may qualify for.
Another one of the most common tax tips that taxpayers need to be aware of is what to do if they can’t pay the amount of taxes owed on federal or state tax returns. The biggest mistake that taxpayers make when realizing that they cannot pay the amount due on their taxes is to not file a tax return. Some people think that not filing a return will prevent a refund from being owed on time when in reality it can make the situation a lot worse. Taxpayers can file an extension deadline; however, the estimated amount of taxes owed is still due on the traditional tax deadline. The Internal Revenue Service (IRS) will impose a number of late fees and penalties on tax payments that were not received in time. Just ignoring the Internal Revenue Service (IRS) may increase the number of or the amount of penalties.
http://www.taxhelpdirectory.com/irs/irstaxlaw/
One of the most important tax tips that a taxpayer needs to keep in mind is that the Internal Revenue Service (IRS) and many state governments change or update their tax laws each year. For this is reason taxpayers are encouraged to check out the website of the Internal Revenue Service (IRS) or the website of their state tax department to determine if any of the tax law changes need to be applied to their federal or state tax returns.
These helpful tax tips are just a few of the many tax tips that can help tax preparation flow more smoothly. The above mentioned tax tips will also help to reduce the amount of money that an individual owes on federal or state taxes or even potentially increase the amount of their refund. Why pay late fees or lose money on tax deductions that you deserve? Let these and other helpful tax tips assist you this tax season.
Gray Rollins is a featured writer for the TaxHelpDirectory.com. To learn more tax tips and for info about state taxes:
5 Reasons to File Delinquent Tax Returns: There’s Still Hope if You Haven’t Paid Your Taxes This Year
October 12, 2009 by admin
Filed under Tax Articles
The April 15 tax deadline has come and gone. For the millions of taxpayers who failed to file legally required tax returns, tax help is available for those who act now! Even taxpayers who received an extension for filing are not granted more time for the payment of taxes owed and may need income tax relief.
The act of not filing your tax returns can lead to more significant financial problems in the long run. Not to mention, failure to file tax returns may be construed as a criminal act by the IRS, punishable by one year in jail and $10,000 for each year not filed. Needless to say, it’s one thing to owe the IRS money, but another thing to potentially lose your freedom for failure to file a tax return.
The longer you put off dealing with overdue taxes, the more serious your IRS problems will be. So I recommend filing any tax returns that are due as soon as possible to avoid additional interest, penalties and potential IRS collection tactics, such as a levy on your bank account.
With the federal budget deficit for the current year expected to top $1.8 trillion, Americans can expect more tax audits and increased IRS actions. So anyone who owes back taxes will want to avoid becoming targets of aggressive IRS collection efforts that can financially cripple them for life.
Here are 5 reasons to file your delinquent tax returns:
1) You can go to jail for not filing your taxes
Even if you haven’t filed your tax return for one year - it is still considered delinquent and could be construed by the IRS as a criminal offense. Actor Wesley Snipes didn’t report more than $10 million to the IRS and he was convicted of three misdemeanor counts of failing to file a tax return. Richard Hatch, who won the first season of CBS’s hit show Survivor, is in prison for failing to report $1 million in prize money.
The IRS goes after those U.S. taxpayers who try to avoid taxes, and Average Joes as are just as likely as high-profile individuals to be targets of the tax-collecting agency. At every level, the agency has become increasingly aggressive in pursuing tax cheats. Are you willing to lose your freedom because you failed to file your tax returns?
2) You can incur a 25% penalty for not filing your tax returns
In this economic downturn, Americans may opt to not file because they don’t have the funds to pay the taxes owed. The best thing for taxpayers in difficult financial situations to do is file their tax return, pay what they can and work with the IRS to establish a payment plan that will keep them compliant.
Additionally, if there are any delinquent tax returns that are due, they should consider filing these returns as soon as possible to avoid the wrath of any potential IRS action, such as a levy on their bank accounts.
3) You can incur additional penalties for not paying your taxes
If you fail to pay your taxes due, you will incur additional penalties for failure to pay. Taxpayers who request an extension of time to file should keep in mind that this it is not an extension of time to pay. To avoid additional penalties, taxpayers should file by the deadline and pay as much as they can, even if they are unable to pay the entire amount due. You will still have a failure to pay penalty, but it’s much less. Then you can work with a specialized tax resolution expert to help you negotiate a tax settlement.
4) You can be subject to an increased tax bill if the IRS prepares your taxes for you
The IRS may prepare a “Substitute For Return” for delinquent taxpayers, in which they won’t be able to file for all of their personal exceptions or allowable deductions. Because these returns are filed in the best interest of the government, the only deductions they’ll usually see are the standard deduction and one personal exemption, subjecting them to a larger tax liability. So it’s important for individuals to file their 2008 tax return as well as any prior delinquent tax returns as soon as possible to save money and avoid significant long-term consequences.
5) You must have all prior tax returns filed to be eligible for income tax relief
All back tax returns must be filed before the IRS will even entertain any type of tax settlement like an offer in compromise or monthly payment plan arrangement. The good news is the sooner you take care of your delinquent taxes, the less penalties and interest you’ll owe.
I believe there’s a solution to every problem. For delinquent taxpayer, it’s never too late for to resolve your tax debt and avoid IRS penalties.
For more information on receiving income tax relief or help resolving back taxes, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of http://www.taxresolution.com/ Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.
Learn How to File Federal Tax Returns Online
October 4, 2009 by admin
Filed under Tax Articles
The season is upon us, the time to pay our federal income tax is upon us. The government both state and federal has made it much easier to file our taxes on line. In the article below you be informed about the different methods of filing online.
Find a Tax Expert Now
First, you can approach a professional tax agency to file your taxes on line. The down side to this is that it can end up costing you a great deal of money, that is not necessary for you to spend. It can cost you well over $200 dollars.
Get Free Help Eliminating Debt
Next, you can file your taxes yourself. You can choose from a wide variety of tax preparation software to help you file your taxes. Using the software almost guarantees that you will not make any mistakes. Turbo Tax is among the most popular tax preparation programs. Anyone belonging to any tax group can use this prograam. There also programs designed for the self-employed.
In addition, to these methods you can avail yourself of one of the many tax-filing websites that are out there. These websites are both authentic and reliable. The sight run by the IRS is among the most popular. It gives you all the tools you need, even providing you with a calculator. The Turbo Tax website is also a very popular one. It permits users to purchase programs that require to file federal taxes online. Tax ACT is another popular website.
Lastly, there is no need to worry about filing your federal income tax online. I am here to tell you it is safe to file federal taxes on line with the help of tax preparation software. So don’t worry and start saving money.
Bryan Burbank is an expert in the field of Finance and Debt Relief. For more information go to: http://www.bigloanguide.com/debt-relief.html
Unfiled Income Tax Returns- Don’t Ever File Them!
September 28, 2009 by admin
Filed under Tax Articles
Never send the IRS your unfiled tax returns. Why? Filing them without knowing your collection and return status could be costly.
If you’ve filed all your previous returns and don’t owe any money, and you can full pay any balance shown on this return, then you can file it now without a problem.
If there are other years not filed and you owe on any of them, or you owe on past years, you should find out your current status with the IRS collection division before filing. You or your power of attorney should get your record of account for many prior years.
The record of account will show the charges and payments to each year. It will also show if you filed or the IRS filed a return for you. If any of the years indicate that you didn’t file, the a return needs to be filed. But… WAIT… Not Yet.
If you have any unfiled returns that show up on your record of account, your payment plan, if you think you have one, is invalid! Make sure you are able to discuss how you will make payments to pay off all of the outstanding balances. The trick is to get all delinquent liability years included under one agreement. This will stop future collection action, assuming you file and pay your taxes, and make your monthly payment on time.
Calling the IRS will also determine if they are in the process of preparing a return for you. If so, they will have a special address for you to send the return to. This will prevent you from having to undo it later. Or worse, the rejection of your newly filed return.
So be prepared to discuss your current financial situation. It’s best to have your income and expenses on a monthly average basis calculated already.
Getting your record of account to verify what is under your social security number will not alert the IRS that you are delinquent. Knowing your current status with the IRS concerning your filings and payment history is essential.
When you are ready to file your unfiled returns and you are missing information, you can request a record of information sent to the IRS from third parties. This includes W-2′S, 1099′S, K-1′S, etc. You are also allowed to estimate amounts that you can’t calculate. There is an art to preparing unfiled returns. Make sure you have help from a tax preparer experienced in this area. I have made corrections to many poorly prepared returns that would probably have caused an IRS audit.
In conclusion… Do not file any unfiled personal income tax returns without first requesting a record of account from the IRS and making sure that you understand what has been filed, if the IRS filed it, and how you are going to present your arguments for paying back the liability.
You probably want to consult an expert advisor before you take any action in thesematters.
Joe Mastriano, CPA has represented thousands of taxpayers before the IRS over the last 25 years. He offers free advice on dealing with the IRS collection division. For additional free information about filing your unfiled late tax returns, visit our site at =>http://www.taxproblem.org/delinquent-returns.html
