PREP STEPS FOR UNFILED RETURNS
- Gather any returns you assumed were filed.
- Gather all IRS notices to you.
- Get your Account Transcripts and your Wage and Income Transcripts* for the last 10 years from the IRS. (More)
- Contact Mr. Hopkins in Colorado Springs or Pueblo to set an in-person, Skype or Facetime consultation.
- Bring all documents with you to the appointment. See you there!
Return Requests for Unfiled Returns
If you received one of these notices, the IRS thinks you owe and should file a return. Usually this is not a difficult case but it depends on the issues. The tax attorney needs to find out what documents the IRS has in your file. Then, we need to see if they are correct and gather the evidence of your deductions.
If you are in some kind of IRS proceeding, such as Audits or Collections, the IRS might send you Letter 729 stating that they want your return. They will not process your case until you have filed.
For retirement plans the IRS will send a Notice CP403 or CP406 requesting Form 5500.
The IRS has recently been sending Form 15103 (Return Delinquency "Questionnaire") to non-filing taxpayers. It essentially corners you into admitting your failure to file was negligent, thus justifying IRS negligence penalties on you!
Please DO NOT complete any questionnaires for the IRS until you speak with Mr. Hopkins. What you say in writing WILL be used against you!
Whichever letter you received is the IRS' first step in their process against you so the tax lawyer still has plenty of time to resolve your case before it becomes a major problem.
Implications of Late-Filed Returns
There are good & bad consequences to having unfiled returns. If the years are really old it's likely that the collection period has expired so you might be able to get a lien release.
But, if the unfiled returns are more recent, you probably lost benefits & elections you would have been entitled to had your return been timely.
Sadly, you can't get a discharge under Chapter 7 Bankruptcy. (See Blog Article) But, you may be able to get a discharge with a Chapter 13 Bankruptcy. Use this Evaluator to see if Bankruptcy is best for you. Now is the time to tackle your problem before the IRS creates its own return to your detriment. But, it must be done in a smart way.
Often, there are multiple years which must be resolved. Each of those years has different issues and different resolutions so rashly filing returns without reviewing the options for each year could hurt you.
Lost Documents
People often fear filing or contacting the IRS because their records are lost or unavailable. However, unless only cash was used, bank records & credit card records can be re-created. Also, even if cash was used, affidavits can be obtained or we can use industry standards to arrive at a reasonable figure. Gathering old records can be a challenge but we are masters at uncovering evidence! See Lost Documents.
If the IRS has a levy against your wages or bank accounts, please complete the above Steps as well as the Prep Steps for Collections prior to your appointment with Mr. Hopkins!
We'll prepare an Action Plan against the IRS that's specific to your needs and circumstances.
*Wage & Income transcripts are computer-generated IRS records about you from your job, your bank, your mortgage company, etc. Account Transcripts show details of your account with the IRS. If you are too nervous about calling the IRS just bring what you can and come in. If you call, the IRS may be stern but don't worry, you need the Wage & Income Transcripts & the Account Transcripts. Tell them you are not yet ready to talk and need the documents for a tax lawyer. Don't Argue!!
