Attention - Delinquent Filers
Haven’t filed in years? First, take a deep breath and quit feeling like you’re the Lone Ranger. You’d be surprised how many folks are in the same boat as you.
If you were due a refund, the IRS will keep it if three (3) years have past from the original due date of the return. However, if you owe them, once they have finalized your tax liability, they have ten years to collect from you! Keep in mind this is AFTER they determine what you owe.
If you are not hearing from them and you haven’t filed, it could be that the IRS has been sending out notices to a prior address they have on you, or they just haven’t caught up to you yet. Copies of W-2’s and 1099’s are sent to the IRS every year from your employers or someone who has paid you over $600 in the course of the year for contract labor work. Unless all you have are W-2’s and there’s not enough wages on them to file, chances are very high you will hear from them sooner or later. My advice is to file your returns as soon as possible. If you wait until they catch up with you, the penalties and interest could eat your lunch, not to mention the tax you may owe. You may even be due a refund if you can file within the 3 year period mentioned above.
If you have heard from the IRS, you need to immediately call them at the phone number on the top right-hand side of your letter (usually 1-800-829-1040—best around 7-8 am to avoid long waiting times later in the day). The absolute worst thing you can do is to ignore them. You will be surprised how nice most of the agents are. Tell them you are taking your information right away to a tax professional and will file as soon as possible. They will give you a deadline for filing your return, and it will only be a couple of weeks or so away. DO IT NOW. Don’t delay any longer. They do keep records of all statements you have said to them, and they will expect you to keep your word. As I have said in my website, I am not currently taking on new clients, however I can recommend Bill Cupp at 901-371-1549. Neither of us are CPA's, so we cannot defend returns either you or another preparer have done.
If you are a current client, I will be happy to assist you free of charge.
Update: PLEASE NOTE--THE CONGRESS AND PRES OBAMA HAVE SIGNED INTO LAW THE "HIGHWAY" ACT IN DECEMBER OF 2015. AMONG OTHER THINGS, THIS ACT ALLOWS THE IRS TO START USING DEBT COLLECTORS AND/OR THE STATE DEPARTMENT TO CONFISCATE YOUR PASSPORT IF YOU OWE THE IRS OVER $50,000.
Remember, the 50K is a total and can be accumulated over time, not just one year's owed tax.