Procrastination - Not your friend!

Education & Training with Hallmark Accounting & Tax Solutions, LLC

Eliabethtown, KY - Irony is such a funny thing.  I took a 2-hour continuing ed class this week on non-filers,  and this week a new client comes to me for help - guess why.....he's a non-filer.  He has NEVER filed a tax return (WOW!) and he's not a "spring chircken"!  The client decided that he wanted to start investing and that he should probably get compliant with the IRS. His reason for never filing -- procrastination. That's a LONG time to put things off!  He stated that several areas of his life have been affected due to not filing tax returns. 

So what's the first thing to do with a client like this? We've got to find out what exactly the IRS says is his current situation. We start with what I call the Discovery Stage which includes the following:

1. We get the proper Authroizations signed in order for me to pull transcripts from the IRS on the taxpayer (a seperate Authorization for each spouse if Married Filing Jointly)

2.  Once we pull transcripts we are able to see all the activity related to the client -- what returns have been filed, what they owe, any penalties, interest, leins/levies in place or about to be placed. 

3. Now that we have the transcripts pulled, we put together a plan to get the taxpayer compliant. (The IRS will NOT discuss ANY type of resolution without the client 1st being in compliance)

4. We then meet with the client again to discuss the options available and see how they want to proceed. 

Each step has it's own fee. The Discovery Stage has a fee. Getting the client into complinace has a fee. Then the resolution services also have their own fee. It is a process that takes time. There is no quick fix to tax problems. Taxpayers get into tax trouble over a period of time, and it takes time to get them out of trouble. 

So, as you can see, procrastination can cost you or your potential buyers valuable time AND money that the taxpayer could have saved had they filed the required returns in a timely manner. 

The point here is.....there will be potential buyers come to you who don't have those last 2 years of tax returns they need in order to get the financing for that beautiful home that you want to sell them.  They CAN get into compliance. There is ALWAYS hope - it just takes time and a little more money than they will want to spend. :-)


Michelle R Brown, EA

Hallmark Accounting & Tax Solutions, LLC

P.O. Box 209

Rineyville, KY  40162

PH. 270-506-3935 or 270-634-HELP


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Michelle Brown

Enrolled Agent / Tax Resolution Professional
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