TAXES NOT PAID

TAXES NOT PAID

by | Dec 20, 2017 | Taxes

 

Many people become non-filers each year for a number of reasons. They lose the paperwork, they couldn’t pay, or they forgot about it. Sometimes illness, family crisis or depression plays a role. The list goes on and on.

If you are a non-filer, don’t procrastinate any longer. You may be hoping the IRS has forgotten about you, but that rarely happens. In truth, the longer you wait, the more costly it will be if you owe money. And if you are due a refund, the statute of limitations on that refund expires three years from the date the return should have been filed. Don’t risk losing your money.

It’s not uncommon to feel overwhelmed when you haven’t filed for a while, but don’t despair. Lost paperwork can be reconstructed. If you owe, it’s better to file and negotiate an installment agreement because this will stop the late filing penalties although interest will continue until the tax bill is paid. Sometimes, penalties can be abated if the circumstances are serious, such as family crisis. Illness or other catastrophic situations.

Contact a tax professional to help you get the monkey off your back. An authorized tax professional like an Enrolled Agent can negotiate with the IRS on your behalf and can help to get taxes filed, negotiate an Installment agreement for those who can’t pay in full or, possibly, negotiate an offer in compromise to reduce taxes, penalties and interest. Don’t wait for the IRS to come looking for you; it’s far better to voluntarily come forward.

Every U.S. citizen and resident is required to pay his or her fair share of taxes. No more, no less. The IRS has a matching program whereby all 1099’s, W-2’s, etc., are entered in their computers. They match this information with the tax returns that have been filed to ensure that all Income has been reported and that everyone who is legally required to do so has filed a return. So, if you haven’t filed for whatever reason, get moving before the IRS comes looking for you!

CHOOSING THE RIGHT TAX PREPARER

CHOOSING THE RIGHT TAX PREPARER

by | Dec 13, 2017 | Taxes

This is a repost of an article I published in December, 2014. It is still relevant today, and perhaps even more so in light of continuous tax scams and tax identity theft. Every tax season I get one or two new clients who have gone back to their previous tax preparer only to find them gone. Here is the article.

As we approach the new year, we will start seeing a plethora of  television ads from competing tax preparation companies. They will make claims like promising “instant tax refunds” or they will tell you that you don’t need your W-2 forms to come in and prepare your taxes. Well, the IRS does not process tax refunds any faster for these companies than for anyone else. What they are offering, if you qualify, is a short term generally high interest loan to be paid back by having your refund sent to them or the financial institution providing the loan. They will also usually be charging an extra fee for this service. The interest and fees will be deducted from the total amount of the refund as well as the tax preparation fee. As for not needing a W-2, except in certain situations where a substitute W-2 may be used, if you are employed for salary or wages you will need a W-2 to file your tax return. The ploy is to get you in the office to “start” your return so that you fell you have to come back to finish once the actual W-2 arrives.

Additionally, because there is still little regulation for who can prepare taxes for pay, when tax filing season comes along, unregulated preparers start popping up in temporary store front locations and they gone by by April 16th.

So what should you look for when selecting someone to prepare your taxes?

  • Be sure to select a tax professional with the appropriate credentials. Enrolled Agents and CPA’s are licensed professionals guided by a code of ethics set forth by the Internal Revenue Service. We are required to keep up with the constant changes in the tax code through continuing education and this is reported to the IRS.
  • Your tax practitioner should have a Practitioner Tax Identification Number and should sign all tax returns.
  • You should use someone who is going to be available all year round to answer questions that may come up. There are life changes that occur during the year that may affect your tax    situation and you may need someone available to offer advice as necessary.