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February 10, 2018

What To Do Before the October 15th Tax Extension Deadline if You Need Tax Help for Unfiled Tax Returns or IRS Back Taxes

Filed under: Tax — Tags: , , , , , , , , , , , — admin @ 12:50 pm

If you filed for an extension to file your tax returns in April, your taxes must be filed by October 15. The worst thing in the world you can do is not file your income tax return on time because you don’t have money to pay what’s owed!  Here’s what you need to do, if this is your situation: File your tax return on or before October 15th and send it in with a money order or cashier’s check for $10.00.  This will ensure two hugely important things:

1.) It will take the IRS’s power away to assess a 25% failure to file penalty away, and 2.) it will create a computerized record at IRS that you filed on time and made a good faith and credible effort to pay something.

So those of your who have been procrastinating better wake up! And for anyone who can’t afford to pay your taxes come April 15th or October 15 – know that you’re not alone.  It’s a common problem and a lot of people end up in tax trouble because they don’t file their tax returns on time even with an extension because they don’t have the money to pay.

Here’s what you can do before the October 15 tax extension deadline if you have unfiled tax returns or IRS debt from back taxes:

•    Get a good tax attorney or tax resolution specialist. You are in dangerous waters here where only an expert tax resolution specialist or tax attorney can help you. To get the back taxes help you need, contact a tax attorney or tax resolution specialist. They are on your side. The IRS is not.•    You need a sense of urgency. If you haven’t filed your tax return before the April 15th deadline, you need to file for an extension using Tax Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return. Not filing your taxes is the worst thing you can do because you can incur a 25% failure to file penalty right off the top.  Failure to file tax returns may be construed as a criminal act by the IRS, punishable by one year in jail and $10,000 for each year not filed.If you haven’t filed for this year, even after April 15th tax deadline you can still file for a tax extension using tax form 4868. A tax extension provides tax help because it can stop the “failure to file” penalty clock before it reaches the maximum. Get tax help from a tax attorney or tax resolution specialist if you’re tempted to file for October 15th tax extension after the April 15th deadline has passed. Only a tax attorney or tax resolution specialist can give you the tax help you need.•    You need to whip out your checkbook, even if you can only pay $5. The bad news is that even taxpayers who received a tax extension for filing are not granted more time for the payment of taxes owed and may need income tax relief.If you fail to pay your back taxes due, you will incur additional penalties for “failure to pay”. Any tax attorney will tell you that to avoid back tax penalties and interest, ideally you should pay 90% of your estimated taxes when you file your tax form 4868 on April 15th. To avoid additional back tax penalties, taxpayers should file by the deadline and pay as much as they can. You will still have a failure to pay penalty, but it’s much less.Our tax attorneys tell our tax relief clients that no matter how much is owed, if they enclose a check for $5 or $10 for back taxes with the return and file it on time, that’s going to give them tax help instantly because: 1) Filing cuts down on the failure to file penalty, so you take that 25% penalty off the table.

2) Writing a check for your back taxes creates a record at IRS that says you actually filed on time and they have to post that $5 or $10 back taxes check to your account.  •   You need to discover quickly whether you owe the IRS more back taxes or you’re due for a refund. If you overestimated your back taxes in April and paid the IRS too much, then you’ll get a tax refund as soon as you file your full 1040 tax return, hopefully long before the October 15th tax extension deadline.•   You may need tax software to discover your IRS debt from back taxes. By October all those discounted tax software boxes offering tax help will be long gone. A tax attorney and tax resolution specialist will have the software you need going back a decade to calculate both state and federal taxes. If you owe back taxes for more than one year, a good tax attorney or tax resolution specialist may be your only shot at getting the tax help you need. •   You need to get your paperwork in order. Filing an October 15th tax extension means you have more time to collect the final paperwork you need. If you have been the victim of a financial crime, a good tax attorney can go back and file amended returns that can drastically improve your back taxes problem. •    You need to act quickly or the IRS will. If you don’t file a tax return by the October 15th tax extension deadline, the IRS may file one for you. If you don’t get tax help from a tax attorney, the IRS may prepare a “Substitute For Return” for delinquent taxpayers. It’s important to file a tax return as well as any prior delinquent tax returns as soon as possible to save money and avoid significant long-term consequences. Get professional tax help from tax attorney so that you get all the tax relief you’re allowed. •   If you owe back taxes for more than one year, all your prior tax returns must be filed to be eligible for income tax relief. All back tax returns must be filed before the IRS will entertain any type of tax settlement.•    You need to realize that this is your last chance. Can you file for an extension past the October 15th tax deadline extension? Not a chance. The IRS will occasionally extend an extension beyond October 15th for a class of people who have suffered a natural disaster. If your home wasn’t destroyed by a hurricane, then your chances of getting a tax extension beyond October 15th are about the same as winning the lottery. The good news is that with an experienced and professional tax attorney or tax resolution specialist, you have a real hope of resolving your back taxes and IRS problems if you act now. I believe there’s tax help for every problem. For a delinquent taxpayer, it’s never too late to resolve your tax debt and avoid IRS penalties. For more information on achieving a tax resolution for your unfiled tax returns or back taxes, visit for a free tax relief consultation or call 866-IRS-PROBLEMS.

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.

September 16, 2016

IRS Penalty Abatement: Five Tips to Reduce or Eliminate Penalties From Back Taxes and Unfiled Tax Returns

Filed under: Tax — Tags: , , , , , , , , , , , — admin @ 12:46 am

If you owe the IRS taxes or have unfiled tax returns, the IRS will come after you for the amount of back taxes owed, plus enough interest and penalties to exponentially increase your original bill. Taxpayers who are victims of unusual circumstances and in need of back tax relief, can request an IRS penalty abatement. In many cases when a taxpayer requests an IRS penalty abatement, the IRS removes 100% of the penalty. You can get IRS penalty abatement, but you need to play your cards very carefully with the help of a tax attorney or Certified Tax Resolution Specialist.

IRS Penalty Abatement Tip #1: Come Clean Fast or Face Potential Jail Time The IRS takes a very dim view of taxpayers who don’t file a return or pay their taxes. They have the power to prosecute back tax cheats and ask the judge to give you a year in jail for every year you didn’t file and/or pay. The longer you wait, the less likely the IRS will be willing to be to grant an IRS penalty abatement. The penalty for filing late is generally five percent each month or partial month of the estimated back tax amount due which can double or triple your bill.

IRS Penalty Abatement Tip #2: File Your Own Tax Return Even If It’s Late. If you don’t file a tax return, the IRS will do it for you. A Substitute for Return will not give you credit for deductions such as exemptions for spouses, children, interest and taxes on your home, business expenses, etc.

The IRS’s mercies are few and far between, but they do allow taxpayers or their tax attorney or Certified Tax Resolution Specialist to file corrected returns at any time. Doing so will bring you into current status and open the door to negotiating an IRS penalty abatement.

IRS Penalty Abatement Tip #3: Get Your Story Straight. To qualify for back tax relief, the IRS requires that you have “reasonable cause” to qualify for an IRS penalty abatement. There are no hard and fast rules about who will receive an IRS penalty abatement, but there are some general guidelines. Your tax attorney or Certified Tax Resolution Specialist can help you decide if you qualify. The IRS will take into consideration the following conditions:

IRS Penalty Abatement Tip #4: Provide Supporting Facts and Documentation. Be prepared to back up the reason you want an IRS penalty abatement with documentation. If someone died, bring a certified copy of their death certificate. If your computer crashed, bring a copy of the trouble ticket from your IT vendor. If your house or business was damaged or destroyed, bring the police reports and insurance documentation. The more detail you can provide, the better.

In deciding whether to grant an IRS penalty abatement, Internal Revenue will consider:

IRS Penalty Abatement Tip #5: Hire the Tax Expert Who Will Get the Job Done Right. If you take on the IRS by yourself, they will eat you alive. A qualified tax attorney or Certified Tax Resolution Specialist has the experience and expertise to give you real back tax help. Most tax attorneys or Certified Tax Resolution Specialists will compose a legal letter, delineating your circumstances and citing recent or past court cases where these verdicts were in favor of the client with the same or similar set of circumstances you have.

IRS personnel are paid to “just say no.” The IRS is in the business of grabbing as much money as possible, not the business of writing off penalties. They are most brutal collection agency on Earth.

Fighting the IRS on your own is like going to court on murder charges without a lawyer. If you have incurred the wrath of the IRS and have good reason to ask for an IRS penalty abatement, then you owe it to yourself and your loved ones to hire a tax attorney or Certified Tax Resolution Specialist who will give you your best chance of IRS penalty abatement.

September 7, 2013

Steps to make filing Unfiled Tax Returns simple

Filed under: Tax — Tags: , , , , , , , — admin @ 12:46 am

There is always a way out and a better one than that of hiding from the IRS that only adds to upto ones troubles. Here are a few steps you need to follow when you need to file a past return:

1.  Find out the last time you filed your tax returns- This will help you determine what documents to accumulate. Ensure you find everything from your W-2 to other tax documents. In case, you are unable to find your past W-2, you need to go to the Social Security Administration.

2. Consult a tax professional- A professional tax consultant would be the best person to help you deal with unfiled taxes, as it involves many complexities.

3. Read the preparation process thoroughly- Until you file your returns you wouldn’t know if you owe the IRS money or will be receiving refund. It is quite obvious that your refund may not last long if you have accumulated penalties and interest over the past years or owe additional taxes. This is where your tax consultant plays a vital role in suggesting you the best option.

4. Get rid of your debts- If you owe the IRS money, pay it right away. In case, it is not possible for you to pay in lump sum, you could opt for an installment plan financed by the IRS or any other source of funding like a credit card or bank loan.

5. Prepare for the future- Ask your tax consultant to help you with reviewing your tax position and plan strategies to reduce your taxes, so that you are able to meet other financial goals effectively.

It is always advisable to act quickly in case of an unfiled tax, as there are fines and other legal hassles attached to it. The quicker you pay them off the better are your chances of avoiding the penalty associated.

Lothamer, founded by Jesse I. Lothamer J.D., C.P.A, has been offering tax related assistance for over 30 years to thousands of clients facing tax problems. The agency specializes in Tax Representation and Tax Problem Resolution and has offices across the State of Michigan.

December 27, 2012

Unfiled Income Tax Returns- Don’t Ever File Them!

Never send the IRS your unfiled tax returns. Why? Filing them without knowing your collection and return status could be costly.

If you’ve filed all your previous returns and don’t owe any money, and you can full pay any balance shown on this return, then you can file it now without a problem.

If there are other years not filed and you owe on any of them, or you owe on past years, you should find out your current status with the IRS collection division before filing. You or your power of attorney should get your record of account for many prior years.

The record of account will show the charges and payments to each year. It will also show if you filed or the IRS filed a return for you. If any of the years indicate that you didn’t file, the a return needs to be filed. But… WAIT… Not Yet.

If you have any unfiled returns that show up on your record of account, your payment plan, if you think you have one, is invalid! Make sure you are able to discuss how you will make payments to pay off all of the outstanding balances. The trick is to get all delinquent liability years included under one agreement. This will stop future collection action, assuming you file and pay your taxes, and make your monthly payment on time.

Calling the IRS will also determine if they are in the process of preparing a return for you. If so, they will have a special address for you to send the return to. This will prevent you from having to undo it later. Or worse, the rejection of your newly filed return.

So be prepared to discuss your current financial situation. It’s best to have your income and expenses on a monthly average basis calculated already.

Getting your record of account to verify what is under your social security number will not alert the IRS that you are delinquent. Knowing your current status with the IRS concerning your filings and payment history is essential.

When you are ready to file your unfiled returns and you are missing information, you can request a record of information sent to the IRS from third parties. This includes W-2’S, 1099’S, K-1’S, etc. You are also allowed to estimate amounts that you can’t calculate. There is an art to preparing unfiled returns. Make sure you have help from a tax preparer experienced in this area. I have made corrections to many poorly prepared returns that would probably have caused an IRS audit.

In conclusion… Do not file any unfiled personal income tax returns without first requesting a record of account from the IRS and making sure that you understand what has been filed, if the IRS filed it, and how you are going to present your arguments for paying back the liability.

You probably want to consult an expert advisor before you take any action in thesematters.

Joe Mastriano, CPA has represented thousands of taxpayers before the IRS over the last 25 years. He offers free advice on dealing with the IRS collection division. For additional free information about filing your unfiled late tax returns, visit our site at =>

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