Unfiled Tax Returns Keeping You Up At Night?

Time to Get Off Your Butt!

Have not filed your taxes for the past two, three, four, or more years? It is time to TAKE ACTION NOW! Here are 2 good reasons:

(1) you will minimize penalties and interest, and (2) keep the IRS from going into a collection enforcement mode, assuming they have not already done so.

Once enforced collection procedures kick in, do not expect the IRS to be very sympathetic.

The very WORST thing you can do is ignore IRS notices. Once a series of computer-generated notices have been issued, ignoring them will trigger enforced collection procedures without any human intervention from an IRS employee. Your wages could be subject to an IRS levy costing you 50% of your take-home pay.

Cannot Afford to Pay Up?

If you cannot pay what you owe, file Form 9465, Installment Agreement Request. By filing this form you’ll greatly reduce enforced collection procedures by the IRS.

A Word About Fraud

This is often significant piece of this specific matter. Keep in mind, simply not filing an income tax return is not considered fraud. Committing fraud takes an act of COMMISSION. For example, intentionally making false or misleading statements or intentionally submitting false or misleading documents to the IRS would be considered an act of fraud and a fraud penalty would be justified.

Not filing an income tax return is an act of OMISSION as opposed to COMMISSION and therefore, is not fraud. So, NEVER intentionally make false or misleading statements or provide any false or misleading documentation to the IRS. If you should be assessed a fraud penalty and you know it’s not justified, attach Form 843, Claim for Refund and Request for Abatement to your letter explaining the reason for not filing.

Tip: Use Form 843 as a cover letter to prevent the possibility of your letter being ignored and finding its way into the bureaucratic abyss, never to be heard from again! At the top of Form 843 write the following: Demand for Abatement of Tax Pursuant to Code Section 6213(b).

Offer in Compromise (OIC)

If it is impossible for you to pay your tax liability within twenty-four months, consider filing an Offer in Compromise. If you qualify, you may end up paying ten cents on the dollar! The IRS will evaluate your circumstances. If it concludes that your offer is equal to or greater than the reasonable collection potential, you are in luck. There is a 150 dollars application fee to file an OIC, however, it is not required to be paid if you qualify as low-income or if you file a doubt as to liability offer.

So, get off your butt, and get busy – get those returns filed!

Larry Villano, Publisher of http://www.loopholelewy.com