The Internal Revenue Service and State Taxing Agencies will file a return for a taxpayer if the taxpayer hasn’t filed and income was reported under their identification number.
All of a sudden you receive a balance due notice for a tax period three years prior and you don’t understand where the assessment is coming from. This is an extremely common issue. The IRS and State Taxing Agencies will file a return for you if you have not filed. They simply take the income that was reported under your social security number and tax you at the highest rate. What this means is none of your expenses or deductions will be taken into consideration, your return will be filed as Married Filed Separate if you are married or as Single if you are not.
Once the return has been filed by the IRS and/or State, they can and they will enforce collection against the assessed balance.
This can all be corrected; you just have to file your returns. I have had countless clients retain our company owing hundreds of thousands of dollars due to assessments made by the IRS or State. Once we pull the taxpayers wage and income transcripts, compile their expenses, deductions, and cost basis if applicable, their balance is greatly reduced, if not eliminated.
Once the returns are prepared, they have to be submitted for review and processing, which takes approximately 6-12 months for the returns to be accepted. Once the returns are accepted, resolution can be implemented if there is a balance due. If the balance has been eliminated, the taxpayers account will be updated with the actual figures and the tax lien will be removed accordingly. In the event there is a refund due, it will be issued once the returns have processed and have been accepted.
The thought of compiling the paperwork and having the assessment can be draining. What you need is someone who can compile your books for you and give you step by step direction in regards to gathering the necessary information to prepare accurate returns.
If the IRS or State has made an assessment against you or you just need help getting your books together, please contact us. We can help you get back on track. You can contact us at firstname.lastname@example.org or visit us at www.insighttaxgroup.com.