Business
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.
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