Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-04-2014, 02:28 PM
Junior Member
 
Join Date: Feb 2014
Location: Texas
Posts: 2
I've never paid income taxes and need to come clean

I need to start this year by being responsible and doing the right thing. What I'm saying is, I need to start paying my income taxes.

There's many reasons why I haven't done this and none of them are good ones, so I'll spare you the excuses.

I need to know what to expect if I start paying my income taxes this year. Will this open "Pandora's Box" with the IRS and cause them to make collection efforts on all of my past due taxes?

I realize that I've dug myself into a deep hole and my income has increased significantly over the past 4 years, so I know that I can't do this anymore.

Please advise



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-15-2014, 05:07 PM
Junior Member
 
Join Date: Feb 2014
Location: Texas
Posts: 2
Bumping this topic back up on the list!

I'd greatly appreciate an answer from a tax professional.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-16-2014, 06:01 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,071
Quote:
Originally Posted by Pipeliner View Post
I'd greatly appreciate an answer from a tax professional.
it depends; IRS research shows that sometimes people don’t file in years their filing status changes, such as due to the death of a spouse or divorce. Emotional or financial reasons may cause a person to not file. Or it could simply be due to procrastination.

Unfortunately, failing to file a return creates additional problems;unless you were subject to tax refunds on your past returns(as I assume that you’d file them all), Not filing a federal tax returns can be costly whether you end up owing more or missing out on a refund. The IRS may also impose a wide range of civil and criminal sanctions on persons who fail to file returns. If you owe tax and your return was not filed by the due date, including extensions, you may be subject to the failure to file penalty, unless you have reasonable cause for not filing. If you did not pay your tax in full by the due date for the return, not including extensions of time to file, you also may be subject to the failure to pay penalty, unless you have reasonable cause for your failure to pay. Additionally, interest is charged on taxes not paid by the due date; even if you have an extension of time to file. Interest is also charged on penalties.The IRS continues to identify people who have a filing requirement but have failed to file a return. By law the IRS may file a substitute return for you if you do not voluntarily file. A series of letters is first sent explaining the possible action IRS may take as part of the Substitute for Return Program. If you do not file a return or otherwise indicate disagreement such as by requesting to exercise your appeal rights, the IRS will file a basic return for you. An IRS-prepared return will not include any of your additional exemptions or expenses. The IRS will compute the tax liability and send you a bill for the tax that will also include interest and penalties.If a substitute return has already been filed for you by the IRS, you should still file your own return to claim any additional items. The IRS will generally adjust your account to reflect the corrected figures.

Note; as aid previously, there is no penalty for failure to file if you are due a refund. However, you cannot obtain a refund without filing a tax return. If you wait too long to file, you may risk losing the refund altogether. In cases where a return is not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund.On the contrary, If you owe taxes, a delay in filing may result in a "failure to file" penalty, also known as the “late filing” penalty, and interest charges. The longer you delay, the larger these charges grow. It may result in penalty and interest charges that could increase your tax bill by 25 percent or more. After the expiration of the refund statute, not only does the law prevent the issuance of a refund check, it also prevents the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid.On the other hand, the statute of limitations for IRS to assess and collect any outstanding balances does not start until a return has been filed.In other words, there is no statute of limitations for assessing and collecting the tax if no return has been filed. Regardless of your reason for not filing, file your tax return as soon as possible. You can contact a tax professional or the IRS for help with filing delinquent returns. If you are unable to fully pay any tax due on the late returns, do not let this prevent you from filing as payment options may be available. For more details, ask your tax professional or an IRS representative.
For more information on how to file a tax return for a prior year(s), visit the IRS Web site at IRS.gov, call the IRS Tax Help Line at 1-800-829-1040 or visit your local IRS office.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Can I reclaim SE taxes I paid on a loss? speedracer350 Limited Liability Company 1 01-21-2014 06:42 AM
What IRS Forms are used to report federal income taxes paid on behalf of these Foreign Partners? TaxGuru Limited Liability Company 0 05-06-2013 02:38 PM
Clean Houses avernitte Income 1 07-25-2011 06:55 PM
What Alabama State Taxes are covered under the Amnesty called Operation Clean Slate? TaxGuru Alabama 0 06-11-2009 11:44 AM
Why Taxpayers should review State Taxes paid in 2007 versus Sales Taxes Paid in 2007? TaxGuru Itemized Deductions 1 03-04-2008 08:18 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning