Unfiled Tax Returns: Four things you MUST know

hi this is IRS tax relief attorney

Anthony parent of parent & parent LLP

the IRS medic and in this video I'll be

talking about the four things you need

to know about filing back taxes with the

IRS the first thing is that if you don't

file your taxes the IRS will do

something that's called a substitute for

return an IRS speak we call this an SF r

with an SF r the IRS tries to assume the

worst tax bill you can imagine they send

you notices to say hey file your taxes

before we do it for you you're not going

to like what we charge you of course if

you ignored these notices about your

unfiled tax returns we totally

understand as these IRS notices are hard

to understand and can get really scary

unless you deal with them every day like

we do but an important thing to

understand is that when you file a

correct return to lower your SF our

assessment what that technically is is

something called an audit

reconsideration I'm not trying to scare

you no it's not like an IRS field audit

with someone all in your business the

reason I mention it is that the IRS does

give a bit of extra scrutiny to the

return processing so it is important

that the returns are done very carefully

when you file past due tax returns your

return processing needs supervision

either by you if you're up for it or a

tax resolution professional the second

thing is time did you know that if you

don't file your taxes the IRS has

forever to assess tax against you for

example if you don't file taxes in 1988

the IRS could file your taxes within SFR

right now now if you do file your taxes

the IRS effectively only has six years

since your filing date to assess

anything additional so what you need to

know is if you don't file your back

taxes you are leaving a potential tax

bill open indefinitely so it's important

you act quickly the third thing is time

again if you have a refund coming to you

for a tax return you only have a limited

amount of time to claim that refund when

you file your return there are two rules

at play first is the two year rule if at

any time the last two years you paid the

IRS money you can claim that as a refund

so let's say that the

IRS levied your bank account for $1,000

last month for tax bill you owe from

2001 if you've taught filed your tax

return now you know that you actually

wouldn't know money so long as you file

within this 2-year period you could get

that thousand dollars back that's pretty

nice well I guess if you don't mind the

IRS going through your business and

taking your money however if you wait

more than two years to file your back

taxes after a payment the i/os will keep

your refund unless the three year rule

applies the three year world rule works

like this you cannot claim a refund for

a tax return that was due more than

three years ago so right now it is June

2013 if you try to claim a refund for

the tax year 2010 and you never filed an

extension guess what and if is if it is

after April 15th 2013 if the IRS owed

you 1 million dollars they would keep it

all and there's not one thing you could

do about it or I suppose there is one

thing the fourth thing you need to know

about unfiled tax returns is documents

you may be wondering well I'd love to

file all my old tax returns but I lost

all my tax documents well tax attorneys

like ourselves have a couple tricks we

use to file old tax returns properly

first we can request any missing tax

forms like w-2s 1099s mortgage interest

statements from the IRS second if you

are missing business records there are

proven legal ways to recreate documents

that will be accepted by the IRS during

your audit reconsideration

so hopefully you get it now if you have

on file returns act quick don't let

missing documents get in the way all of

that can be dealt with totally legal

with no problems down the road remember

when it comes to unfiled tax returns the

IRS rules are written to favor the IRS

so do yourself the biggest favor you

possibly could today and take action if

you are not sure that you can do all of

this yourself and you don't fully

understand the rules hire a tax

specialist who knows how if you have

been procrastinating and you can't quite

make any positive action here's one

simple idea give my office a call at

eight eight eight four seven

four to five eight will shoot an email

to info at RS Medicom until my people

you watch this video on unfiled tax

returns and will take care of you and

your worries this is anthony parent of

parent & parent LLP b IRS medic i thank

you for watching