Whether it was COVID-19, a business problem, life issues, or just letting slipped, there is always a story behind why you need to complete back tax returns. We promise you that we wont judge you, and we’ve probably heard worse reasons than yours, so let’s start the process of getting your tax return situation caught up.
How do we handle Back Tax Returns
If you are ahead of the IRS, fantastic, but usually the IRS triggers the process. So if the IRS has already started breathing down your neck, the back tax returns are normally handled as part of your IRS Representation engagement. If we are not representing you for the IRS, the first challenge is to gather whatever records you have, which might be bank statements, and start to assemble the records necessary for completing what accounts call a “write-up,” essentially a quick and dirty set of business books to complete a tax return. After assembling your tax returns, we will review them with you before submission to the IRS, and then develop a “go-forward” plan to prevent this from every happening again.
Many people have fallen behind with the IRS, even accountants. You’re not a bad person, you just didn’t submit your paperwork. We’ll get you up to speed as fast as possible and help minimize the taxes, fines, and interest as we get you back on track.
What about my current tax returns while we work on back tax returns?
Generally, tax returns have to be done in order, because information on one flows into the next year. However, each situation is different, and we may need to file current returns to avoid penalties and interest, knowing that we’ll have to amend the return after you catch up. Each situation is different, so let’s talk about your situation and help you resolve it, and avoid these problems in the future?
Can you get rid of penalties and interest?
We can often get the IRS to remove or reduce penalties as you move into compliance, but interest is a much harder sell. By having a full IRS Compliance plan, showing the IRS that you are not going to repeat the problem, you are much more likely to get these matters resolved to your liking.
More importantly, if you don’t resolve the matter, the IRS will make it extremely costly. The IRS Page on filing past due tax returns covers the details, but they can create a substitute return which will be far worse than reality, and then start assessing penalties and interests against this fake return. But once we start the IRS Resolution and Back Tax Return process, we can stop the situation from getting worse.
So schedule that Zoom Meeting today, and let’s start ending your IRS nightmare so you can turn the corner and focus on growing your business.