Non-Filer? Make it Right with the IRS

If you haven’t been filing your tax returns for quite some time, chances are, you are have been bothered by the IRS now. You may have been receiving notices imploring you to settle your taxes. Penalties, fines and even jail time are just some of the consequences of a delinquent tax payer. Before what started out to be a simple matter goes out of hand, you might want to set things straight now. You may ask: what will become of me when I have obviously disobeyed the law? This eventually puts you in a complex position.

It is an undeniable fact that you must file all un-filed tax returns, first and foremost. You should do this even if you have doubts that you can pay for all tax dues, including applicable penalties and fees. In the rare occasion that you are in fact entitled to a refund rather than penalties, you still have to move fast. Otherwise, this benefit will be forfeited if you do not attend to this matter immediately.

If you are a non-filer, filing your taxes will not only get your finances back on track but it will also prompt the IRS to stop harassing you for not filing your taxes. It is almost as simple as that depending on your specific situation. Many people who haven’t filed do not even owe the IRS anything. Because they didn’t get the hang of it, they set this obligation aside. Now, what was once a simple issue became a big IRS problem.

If you have indeed decided to file your tax returns now, the first thing that you should do is ask the help of a tax professional. He/She will be able to correctly file your taxes and assist you in facing the IRS should any new troubles surface. His/Her experience in the field will be of great help to you too.

What information should you gather and bring to your meeting with your tax professional? All that is available. Just to be sure, bring as much information as you can and it will be the tax professional’s job to identify which are useful and which are not. Your W-2 forms, any 1099’s, receipts and any supporting documentation for expenses, social security numbers for anyone you are claiming as dependent and a copy of the last tax return that you filed with the IRS are some of these requirements. Make sure that all these pieces of information are available to your tax accountant. The more information they can access, the more they will have to work with when trying to reconcile your tax record.

Refunds and benefits from the Social Security are largely affected by the filing of your past tax returns. The IRS outlines that you should have filed for your corresponding taxes within a three-year period if you would want to get a refund. After that period, your right to a refund is forfeited and you are giving your money to the IRS. For the self-employed, delinquent filing of tax returns will keep you from receiving tax credits which will be carried over to your Social Security retirement or disability benefits. Since the IRs has no record of your earnings, they have nothing to report to Social Security, as such, no tax credit will be given to you.