I represent taxpayers in Bucks and Montgomery County and the rest of the Philadelphia area with tax issues. I have recently seen an uptick in individuals who have not filed tax returns, some for many years. In fact, the non-filer issue is a major priority of the IRS, who have stated publicly that they have identified more than 10 million taxpayers who have failed to file returns, many of which voluntarily came forward looking for economic stimulus checks earlier this year. In coming weeks, the IRS plans to roll-out an initiative to target these non-filers.
In addition, it is worth noting that the willful failure to file a tax return is a federal tax crime under the Internal Revenue Code's Section 7203.
So what can non-filers do, and how can we help them get their tax return issue resolved with the IRS? It depends upon why they failed to file in the first place.
If the failure to file the tax returns was a lack of money (ie. they realized they would be unable to pay the tax liability reflected on the tax return and so chose not to file) then we can get those returns filed and begin working on a tax resolution for them to resolve the back tax balance, including Installment Agreements, Offers-in-Compromise ("OIC"), of have their account placed in uncollectable status.
If the taxpayer's failure to file was intentional and for other reasons, such as cash payouts to undocumented workers, then the way to resolve the issue and avoid criminal tax referral is by utilizing the IRS's Voluntary Disclosure Program. By doing a voluntary disclosure the taxpayer can come in and disclose the issue without fear of a criminal tax referral.
If you or someone you know has unfiled tax returns or some other federal or state tax issue, please feel free to contact me at either (215) 316-3437 or email me at steve@trustedtaxresolution.com.
Steven Buonomo CPA
1016 Mill Creek Road
Feasterville, PA 19053
215-316-3437
steve@trustedtaxresolution.com
trustedtaxresolution.com
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