So You Haven't Filed Tax Returns?

By
Services for Real Estate Pros with Anchor Tax Relief LLC 00100741-EA

I've worked with many good Realtors over the years who haven't filed tax returns.

An agent's  "busy season" (March - April - May) matches up perfectly with the IRS filing deadline. Which means Realtors can get so busy serving clients that they lose track of the tax timeline.  

I'm excited about the information I'm about to share because it's helped so many put their tax problems behind them and get a fresh start!

 

Let's Talk Compliance - 1040 Returns

If agents or brokers miss one deadline, it can have a snowball effect. They don't want to file the next year, in fear the IRS will find out about the first year missed. Or they just don't feel they can afford to pay the taxes.

They key to fixing an IRS problem is to first get "Compliant". 

You can't pass go, you can't get a deal with the IRS, you can resolve an IRS Problem unless you're in compliance - meaning you've filed your last 6 years returns.

Don't worry about the debt. We can help with that later. They key is to get compliant.

If you're record-keeping has holes in it, we can help with that too. Just make the decision you're going to file the returns.

 

Let's Talk Compliance - State Returns

States typcially won't give you a break. They likely will want you to file every doggone year that's missing. "10 years? Fine. 20 years? Get it done!")

But... it may be possible to limit the lookback period and the taxes/penalties if you proactively enter into a Voluntary Disclosure agreement.

For example, you agree to open the door to filing say, 5 years of returns, and a subsequent payment agreement, in exchange for the state forgiving the earlier years. 

It depends on your state. 

Note, however, that state tax agencies are very aggressive. Often they're more aggressive than the IRS, in my opinion!

 

Let's Talk Compliance - Payments

The other important next step is to make sure you're making sufficient current year payments. In other words, if you're paid on a 1099, and no one is withholding federal or state taxes, it's on you to be making quarterly estimated tax payments on your 2021 commission income.

If the tax agencies see that you're serious about your current taxes, they have more confidence you'll keep your promises with a payment agreement on prior year taxes. 

Again, no compliance - in terms of payments and filings - no "deal" to fix your tax problem. 

 

Questions? 

If you need help pulling together what's needed to file prior year returns, or have questions, I can help. 

Contact me to learn your options and determine your best 'next steps', end your IRS stress, and even settle for less. 

I specialize in assisting taxpayers in trouble with the IRS, and am well acquainted with navigating the IRS Collections and Appeals processes. If you have questions, contact me at 757-346-1040 or jim@anchortaxrelief.com. If you're looking for more information, see my video "So You Haven't Filed Tax Returns?" here: https://youtu.be/zbTgu1tHEbs

Comments (1)

Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Jim Flauaus These are great points you have shared.

Feb 12, 2021 07:00 PM