When you forget or neglect to file an individual income tax return, it makes you feel anxious about the potential consequences. You may become so nervous that you’re considering not filing future tax returns either. Roberts Tax Advisory has dealt with this situation many times and can help you find a better tax resolution.
You Don’t Want to Force the Hand of the IRS
Ignoring your tax debt and trying to evade the IRS is never a good solution. The IRS will aggressively attempt to collect on your tax debt as well as add interest and penalties to your outstanding balance. You can also expect the IRS to file an SFR, or Substitute for Return, for every year that you failed to file. The IRS does not consider your best interests when taking this action, which means you won’t receive the exemptions and credits you might have qualified for when completing your own return.
It can have a negative impact on your state income taxes when the IRS files an SFR on your behalf. This is true even when you file state returns in a timely matter. The reason for this is that the state calculates your tax rate based on your Adjusted Gross Income (AGI) on your federal return. When the IRS must file an SFR for you, there’s a good chance your AGI will be higher than it should be.
Let Us Help You Get Caught Up on Taxes
Filing prior year returns can be a complicated process. You will need to track down all W2 and 1099 statements for the years you missed along with mortgage interest statements and anything else you want to claim for a credit. The good news is that we are here to advise you every step of the way. Please contact us today to learn more about how we can help you with unfiled taxes.