The focus of our practice is helping individuals and businesses resolve their IRS tax problems in the Las Vegas, Nevada, St. George, Utah areas, and elsewhere. One way we like to help taxpayers is to educate them.
After not filing tax returns for a number of years, you are ready to tackle the issue. However, you have a big problem, you don't have records of income and or deductions. While this is an issue, it does not make it impossible to prepare a return.
The 1st step is to always request a copy of your transcripts from the IRS as they will have a record of income that was submitted to them on information returns.
If you had a business, you can reconstruct the income by adding up the deposits from bank statements. For expenses, the IRS recommends using https://bizstats.com. Bizstats.com provides business financial ratios classified by type or entity, industry, and amount of gross receipts, which can be used to estimate expenses.
If there is no record of Income, a taxpayer can estimate income by adding up expenses that were used to live on.
The IRS will normally accept tax returns based on reasonable estimates.
If you or someone you know needs help with filing back tax returns or has IRS problems, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
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