In this episode, I discuss what the IRS can do if you fail to file your tax return. Believe it or not, the IRS can "file" a return on your behalf and pursue collection of any taxes assessed.
Here's what happens. The IRS receives a great deal of information from third-parties, such as your employer (Form w-2) or from your investment company (Form 1099-DIV or 1099-B). Every year, the IRS will compare the information on file from these third-parties to any filed returns (or lack thereof). If the IRS detects that a return has not been filed and it appears from its information that a return should have been filed then it will contact the taxpayer to secure a return.
If the taxpayer fails to file a return after demand then the IRS may prepare one based on the income information it has on hand. Don't expect the IRS to be looking out for your best interest. Instead, you will be treated as filing single or married filing separate (depending on your marital status). You will get only the standard deduction and that's it. As you can imagine, this results in a much larger balance due than if you filed a return. So what can you do?
Listen to find out.
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If you or someone you know has a tax problem and needs help now, call our office at 207-502-7181 or email us at jwade@jdwadelaw.com. We will be glad to help you. Otherwise, please enjoy our content and let us know if there are topics you'd like us to discuss.
Episode 30: What to Know About IRS‘ Private Collection Agencies
Episode 29: The IRS is Back in Business - Beware of Levy Notices
Episode 28: My Ex Spouse Claimed My Child, Now What?!
Episode 27: Don't Lose Your Golden Ticket to US Tax Court
Episode 25 - Some Dirty Secrets About Filing a Joint Tax Return
Episode 24 Home is Where the Heart is and Maybe Even Some Taxes
Episode 23: IRA Tax Traps
Episode 22: Payroll Tax Problems
Episode 21: IRS Announces New Taxpayer Friendly Initiatives
Episode 20: IRS Transcripts and How They Can Help Your Case
Episode 19: The Roadmap to Resolution
Episode 18: How to Avoid Bad Apple Tax Preparers
Episode 17: Death and Taxes, What Happens to Your Tax Debts When You Die
Episode 16: Employers. Watch Out, if You Outsource Payroll!
Episode 15: What Are Offer Mills and Why Should You Steer Clear of Them
Episode 14: What to Watch Out For If You Are Divorcing a Tax Deadbeat.
Episode 13: Are There Any Drawbacks to Filing an Offer in Compromise?
Episode 12: IRS Offer-in-Compromise Myths
Episode 11: I Can't Pay My Taxes! Now What?
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