Tax Relief in Back Taxes
Posted by Dean Alexander on Fri, Aug 06, 2010
We always argue that not filing your taxes is bad and filing is good and smart, period. There are many benefits for filing all your unfiled returns and embarking on an action to resolve your IRS tax problem.
Any tax resolution or IRS tax settlement must start with filing your taxes. The IRS will not listen and will not play unless we file the back taxes. No Installment Agreement is granted. No offer in compromise or a reprieve in the Currently-Not- Collectible status will be considered unless your are in compliance. And what is compliance? It is filing all the unfiled taxes.
Many a times we are handling a wage garnishment case and about to close a deal with the IRS on the other line and lo and behold, here an unfiled tax year is found. The whole thing is dead in its track and the solution to your tax problem is delayed. Now we have to gather the data and prepare the unfiled returns while they continue to garnish and leave you with nothing to live on. So, is it a good idea to file? You bet.
Filing is good because it puts you on the good side of the IRS. You also may avoid a possible legal trouble. Many people have managed to recover refunds in the 11th hour that would have otherwise lost to the statute of limitation for refunds.
Also remember that if you owe back taxes to the IRS, the statute of limitation for collecting your IRS tax debt is ten years. Those ten years do not start unless you file and the tax is assessed. If you file you may benefit of the collection statute of limitation and get lucky and get away with the IRS tax debt. Another benefit is that tax audit will be, limited to three years if you up-to-date on filing. Filing is good.
Many people dread to file because they are afraid to unleash the wrath of the IRS for the tax debt that they may owe. If you have a competent CPA, tax attorney or enrolled agent, you may be surprised that your situation may be much better than you think. Seek a competent IRS tax help and start the tax relief process.
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