I Havent Filed a Tax Return with IRS in Years, What Do I Do? > NetSparsh

Home
>
Tax
>
I Havent Filed a Tax Return with IRS in Years, What Do I Do?

I Havent Filed a Tax Return with IRS in Years, What Do I Do?

In elementary school, kids come up with creative excuses why they did not bring in their homework. "My dog ate it" or "It was stolen by invisible space aliens" might be given as a reason why something was not turned in on time. Don't try those excuses with the IRS! Don't blame divorce, business failures, or family troubles either, because except under extreme circumstances, they won't register with the taxman.

If you have unfiled tax returns, you need to file at least the last 6-7 years. Although under law IRS could make you go back and file that return from the late 1970's when you were a disco diva or urban cowboy, the good news is that as a matter of policy they don't! In most cases, filing the last 6-7 years will be OK and IRS will consider you in compliance. So don't procrastinate any further, file the returns if you made over the standard deduction and personal exemption amounts during those years or were self-employed.

People delay filing returns for 3 main reasons:

1. They are afraid or embarrassed;

2. They have lost the records or don't know where to go to get the returns done; or

3. Some crackpot advised them income taxes are bogus and that they don't have to file.

Don't be afraid of filing, be afraid of what will happen if you don't file. IRS could file for you and you might owe more than if you would have done it yourself or IRS could send somebody out looking for you. It is not a crime to owe IRS money, it can be a crime under some circumstances for not filing a tax return or a false return.

If you lost your records relax, in most case you can get all your income data from IRS so that you can prepare the tax returns. If you had deductions, you may have to dig those up and organize your records.

IRS is a legitimate government agency and they can and do enforce the laws on filing a Federal Tax Return. It sounds good when somebody says IRS is a fraud, but it is a lie. We all have to pay taxes.

If you havent't filed in years you can call the IRS at 1-800-829-1040 and after lots of time on hold and maybe a few transfers, you will eventually get somebody who can help you get your W2 info mailed to you. Your local library may have old tax forms and tax books to help you do the returns. You can do it yourself, but I suggest getting a professional to help you.

Don't go to some guy or gal advertising on TV with a big company. Go to a professional person or small firm where you can talk one on one with a CPA, Enrolled Agent, or Tax Attorney. It doesn't have to be a local person, you could hire someone across the country. With email, fax, etc. you can avoid some embarassment of going to a local tax pro if you live in a small town by hiring someone far away. But don't hire somebody without checking them out. Read any contract they send you. Don't part with your hard earned money unless you are sure of their qualifications.

Members of the following organizations must adhere to high ethical standards and might be a good choice for you: National Society of Accountants (NSA); National Association of Enrolled Agents (NAEA); or the American Insitute of Certified Public Accountants (AICPA). You might also look for professionals holding the Accredited Tax Preparer (ATP) or Accredited Tax Advisor (ATA) designation.

Don't let your cousin Jimmy do your returns or that nice neighbor who says he is an expert. I have seen more screwed up returns done by friends and relatives than I care to remember.

Get peace of mind, file those returns. You may owe money but you may have a refund waiting. Guess what, if you file the return more than three years after the due date; you lose the refund!

Here are some sites that can give you more info:

www.irs.gov
www.naea.org
www.nsacct.org
www.exirsman.com

James Robert Coleman, E.A., A.T.A.
Enrolled Agent & Accredited Tax Advisor
Member: National Association of Enrolled Agents
Former IRS Revenue Officer, GS-11
http://www.exirsman.com

In The News:

State and Local Taxes Are Worsening Inequality The New York TimesEconomic inequality is on the rise in Illinois, and the state government is part of the problem. Illinois taxes low-income families at much higher rates than ...

Would you pay less tax if you lived abroad? BBC NewsThe country you live in plays a big part in how much tax is deducted from your wages.

Reaching the zero income tax level of ₹5 lakh LivemintMUMBAI: Did you know you could pay zero taxes even if you earn more than ₹5 lakh? According to the current tax laws, there are three tax slabs depending on ...

Before filing your tax returns this year, calculate and pay self-assessed tax LivemintBefore filing your income tax return (ITR) this year, ensure there is no pending tax payable on your part through self-assessment. For this, you need to take into ...

How IRS Taxes Fire Victims ForbesDo wildfire victims worry about their taxes? You bet. How fire victims are taxed depends on what they collect, what they claim on their taxes, if they are rebuilding ...

The Problem with France's Plan to Tax Digital Companies Harvard Business ReviewFrance recently approved a 3% tax on revenues generated by large digital companies in its territory, a move that is now being investigated as a potentially unfair ...

When It Comes to Taxes, Sometimes It Pays to Say ‘I Don’t’ The Wall Street JournalCommitted couples who decide not to tie the knot can reap substantial tax savings.

Penalty for late filing of Income Tax Return MoneycontrolThe last date for filing of returns is July 31. For 2018-19, the last date filing Income Tax returns was extended to August 31, 2018. If you fail to file your returns by ...

This is how much income tax you're paying to your state CNBCHello, New York! The Empire State is home to some of the highest income taxes in the country. It collected $2249 per capita in individual income taxes in 2017, ...

ITR filing: Over 1.46 crore income tax returns filed already; here's how you can choose correct form Business TodayFiling ITRs is mandatory for all Indians, including NRIs, with a total income of over Rs 2.5 lakh. The threshold for senior citizens (above 60 years) is Rs 3 lakh ...

Tax no more |India Today Insight India TodayThe government's challenge is to pump up falling tax revenues, fulfil its promise of lowering corporate tax rates and spur spending in a slowing down economy.

Who can claim credit for state and local taxes paid in a foreign country LivemintA taxpayer can choose to be governed either by provisions of the tax treaty or by the domestic tax law to the extent more beneficial to him.Under the tax credit ...

Higher taxes on the rich, but low returns for the Union government LivemintThe govt expects the additional revenue from the increased surcharge on individuals at just ₹2724 crore.On Friday, finance minister Nirmala Sitharaman ...

Why new tax surcharge has stunned foreign portfolio investors Economic TimesThe business entities known as Association of Persons have been stunned by new surcharge.

Opinion | How we could improve tax compliance behaviourally LivemintIn the 2019 Union budget, finance minister Nirmala Sitharaman increased tax rates for the super-rich. She is hoping that increasing tax rates would ...

People angry over rising inflation, heavy taxes in PoK India TodayPeople in Pakistan occupied Kashmir (PoK) are facing immense difficulties due to the consistent increase in inflation rates and heavy pay taxes implemented by ...

Why high income tax rates are so unjust in India - Govt's justification Economic TimesIt's true, there are countries where the super rich pay even higher taxes than they do in India.The government used this to justify the higher taxes that those ...

FM Nirmala Sitharaman shrugs off pleas by FPIs on super-rich tax LivemintFinance Bill amendments propose further tax relief for startups, NBFCs.Finance minister added more safeguards against tax evasion in the amendments to ...

Budget 2019: Surcharge rate on income tax increased for super-rich LivemintCurrent highest rate of applicable income tax rate is 35.88%.Surcharge which is charged over and above the tax amount has been increased for those earning ...

Verify pre-filled data carefully before filing tax LivemintPre-filled information is only available for those filing their tax on ITR-1 or ITR-4 completely online using the income tax department's e-filing website.The form ...

We should celebrate those who pay taxes: View Economic TimesThe minority that accounts for its income and pays taxes every year is lonely in its faith and sense of duty.

Changed jobs? Report all salaries and pay taxes MoneycontrolTax return filing may be relatively complex in case you have changed your job and have worked with more than one employer during a particular financial year ...

Buyback tax: A loophole fixed or an anomaly made worse? LivemintIn the past three fiscals, Indian firms bought back shares at an average rate of ₹47800 crore.

No More Deals: San Francisco Considers Raising Taxes on Tech WIREDAt a recent postmortem for the so-called Twitter tax break, the divisive San Francisco policy that drew tech companies to a beleaguered stretch of downtown, the ...

Govt widens scope of direct tax code to make compliance easier for taxpayers LivemintNEW DELHI: The government on Wednesday widened the scope of a new direct tax code that is on the drawing board to make compliance easier for taxpayers, ...

Selling inherited gold? Income tax rules you should know LivemintIn India, no income tax is levied on inheritance of gold but subsequent sale of the inherited gold is taxable.Taxpayers should maintain the documentation on ...

France tech tax: What's being done to make internet giants pay more? BBC NewsFrance is to become the first country in Europe to introduce a tax on tech giants like Facebook, Amazon and Google. The move has upset the US. So how does it ...

Family that refused to pay tax because it was 'against God's will' ordered to pay $2.3m The GuardianTasmanian judge tells family there is no Bible passage that says “thou shalt not pay tax”

Budget 2019: Is it feasible to reintroduce inheritance tax in India? India TodayNoted economists feel that it would be a good idea to reintroduce such a measure in the wake of lower tax collections and need for higher spending in the social ...

Back-to-School Sales Tax ‘Holidays’ Lure Shoppers Despite Slim Savings The New York TimesPeople who won't walk across the street to save $5 on a pair of pants will take a day off from work to take advantage of a sales-tax holiday,” a tax expert said.

Income Tax Return 2019: What consequences you may face if due date to file ITR is missed The Financial ExpressAfter the end of a financial year, earning individual and entities need to calculate total income earned during the year and report it through Income Tax Return ...

One-Time Amnesty Scheme in Making for Old Income Tax Cases Worth at Least Rs 8 Lakh Crore News18A one-time amnesty grant for legacy income-tax disputes worth at least Rs 8 lakh crore may be in the works, according to sources. They speculate that a ...

NHAI plans land appreciation taxes to finance projects Economic TimesNHAI is working on a mechanism to share gains in land value on account of upgradation of highways.

How NDA has failed to end tax terrorism, legacy problems The Financial ExpressThe NDA thanks the tax payers in the budget—never the case with the UPA—but the rest of the treatment remains almost the same.

No relief from super-rich tax for FPIs structured as trusts: Sitharaman Business StandardForeign portfolio investors (FPI) functioning as trusts in India will have to pay the tax surcharge proposed in Budget, said Finance Minister Nirmala Sitharaman ...

America needs to see Amazon’s tax returns The VergeTax law keeps us from knowing what Amazon's tax bill really is — even as politicians like Joe Biden, Elizabeth Warren and even Donald Trump call out the ...

The ‘digital services tax’ could set off another trade war. Countries must work together for a way out. The Washington PostEUROPEAN NATIONS are taking aim at U.S. technology companies with a cash-grabbing proposal that could set off another trade war. Now the world needs to ...

Beware. Other Nations Will Follow France With Their Own Digital Tax. The New York TimesLast Thursday, the French Senate passed a digital services tax, which would impose an entirely new tax on large multinationals that provide digital services to ...

Explainer: Will taxing the super rich affect foreign investment inflows? India TodayIndustry experts say that new tax regime for the rich could make India uncompetitive and expensive for foreign investors.

At 48.3% in 2018, corporate taxes in India among highest in the world Business StandardCorporate income tax in India is among the highest in the world, with the tax rate growing steadily in recent years. Of the 94 jurisdictions covered by the ...

No change in dividend distribution tax Economic TimesFinance Secretary Subhash Chandra Garg on Friday ruled out any change in the dividend distribution tax, but expressed flexibility that grandfathering tax on ...

Govt’s new buyback tax set to hit MF investors, shareholders alike LivemintThe new buyback tax coupled with dividend tax may lower the return from various equity investments.Investors should keep a close eye on how companies and ...

Foreign investors' lobby group asks India to reconsider high taxes MoneycontrolForeign investors are urging India to reconsider its decision to increase taxes on certain groups of wealthy portfolio investors, arguing the move will hit the ...

Paying rent or letting out your place? Know the tax treatment on house property MoneycontrolThe annual value of a house property is the amount of rent which it is reasonably expected to earn.

New income tax rules with tougher penalty comes into effect: 10 points LivemintNEW DELHI: Under the revised guidelines of the Income Tax department, those indulging in serious offences under black money and benami laws will not be ...

3 tax-planning lessons from Joe Biden's tax returns CNBCFormer Vice President Joe Biden takes the stage for the second night of the first Democratic presidential debate on June 27, 2019 in Miami, Florida.

CRA program to help poor file taxes yields noticeable bump in people helped Coast ReporterOTTAWA — A federal program designed to help low-income Canadians file their taxes has boosted the number of returns it's handled in the year since the ...

If you miss to file return by due date, you will be penalised, even get jailed LivemintGiven that the deadline to issue Form 16 was extended till 10 July, the last date for filing income tax return (ITR) for FY18-19 may get extended well beyond 31 ...

Morgan Stanley's rich clients withdrew a surprising amount from accounts to pay their taxes CNBCWealthy clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen previously.

Corporate Tax Rates: How Low Can You Go International Monetary FundBy IMFBlog. In life, two things are certain: death and taxes, the saying goes. Unless you are a large multinational corporation, in which case, maybe not. Over the ...

Have NDA’s tax reforms been counterproductive? MoneycontrolWith tax revenue collections falling short of budget estimates, there is a need for the govt to reconsider its ambitious targets and reform the tax system.

As Nations Look to Tax Tech Firms, U.S. Scrambles to Broker a Deal The New York TimesThe proposed levies on firms like Facebook and Google are pitting traditional allies against one another and threatening to set off a cascade of tax increases ...

What is the last date to file income tax return? - It's not same for all Economic TimesThe last date to file income tax return (ITR) varies for different categories of taxpayers. For individuals, Hindu Undivided Families (HUF) and those taxpayers ...

Big U.S. Banks Are Earning Billions. Trump’s Tax Cuts Are Helping. The New York TimesThe five largest banks in the United States reaped tens of billions of dollars in profits in the first half of the year, thanks in part to a strong economy and to the ...

Foreign-Owned Banks’ Results Could Sweeten Further Under Tax Law The New York TimesWASHINGTON — President Trump's tax cuts have been very good to big banks. For foreign-owned banks, they could get even better. The cuts allowed ...

Keep your date with filing income tax returns MoneycontrolWith the Income-tax Return (ITR) filing deadline fast approaching on July 31, 2019 [for individuals not subject to tax audit provisions under the Income-tax Act, ...

New Greek PM emphasizes tax cuts, jobs, security CityNews VancouverATHENS, Greece — Greek Prime Minister Kyriakos Mitsotakis has outlined cutting taxes, attracting jobs and tackling rising crime as his top priorities. Mitsotakis ...

What are CPSE ETFs? You can soon save taxes by investing in them LivemintMumbai: You can soon save taxes by investing in Central Public Sector Enterprises (CPSE) exchange traded funds (ETF) as the government is set to introduce ...

Is it viable to reintroduce estate tax in the upcoming budget? LivemintAhead of the Budget 2019, there is speculation that the govt may reintroduce estate taxes in order to enhance tax revenue.Ashwini Kumar Sharma asked 4 ...

View: If it moves, tax it. That's desperate, India Economic TimesBy Andy Mukherjee Desperation is creeping into India's economic policy-making. Having lost the fiscal plot, bureaucrats are trying to marshal resources by ...

How to handle your taxes in a blended family Press-EnterpriseThis is part two of a series of 5 articles discussing the following case hypothetical from the various professional perspectives: A and B are about to be married.

Things You Should Know Before Filing Your Income Tax Returns (ITR) NDTV NewsITR filing: Non-filing of return of income may result in penalty and prosecution, according to the Income Tax department.

Budget 2019 analysis: What income tax changes mean for you Economic TimesHere is a look at the tax proposals announced in both the budgets and their tax impact on your pocket.

Income tax return filing: Here's your step by step guide Economic TimesJuly 31 is the last date to file your income tax return (ITR) for FY 2018-19. By filing your ITR on time, along with certain benefits such as carry forward of losses, ...

Not more than 5,000 super-rich in India, tax hiked to help poor: Sitharaman Business StandardThe decision to raise the tax on the super-rich was taken with an aim to get them to participate in the government's initiatives in supporting the country's poor, ...

What the IRS doesn’t tell you about self-employment taxes MarketWatchMany taxpayers get confused about whether they owe the 15.3% self-employment tax.

Pakistani businesses on strike over new IMF backed taxes Economic TimesHundreds of thousands of Pakistani businesses are on strike nationwide to protest a new sales tax, which opposition political parties say is being imposed as ...

Will Aadhaar interchangeability for ITR make PAN redundant? LivemintApart from interchangeability with PAN, Aadhaar can also be quoted in other transactions that otherwise require quoting of PAN.In a few years, Aadhaar may ...

Uganda: One year of social media tax Deutsche WelleThe introduction of a social media tax a year ago in Uganda caused an outcry from government critics and rights groups. And today, even some of the staunchest ...

Tax On Super-Rich Decoded: Here's Your Complete Guide To Understanding New Rules NDTV NewsIncome tax slab: "In view of rising income levels, those in the highest income brackets, need to contribute more to the nation's development," Finance Minister ...

As Seattle gets closer to an income tax, state Republicans work to stop it CrosscutEarlier this week, Seattle's attempt to tax the wealthy was once again declared unconstitutional, based on how the tax would affect certain taxpayers and not ...

Progressive taxation will help bring down income inequality LivemintThe govt's focus on rationalizing corporate tax rate is the need of the hour for Indian economy.In a dynamic economy, some sectors may need to be incentivised.

How a Tax Loophole Is Helping Silicon Valley Workers Save Millions The New York TimesA little-known tax break allows some start-up employees who own company stock to avoid paying taxes on up to $10 million when they sell their shares.

Facebook answers how Libra taxes & anti-fraud will work TechCrunchFacebook provided TechCrunch with new information on how its cryptocurrency will stay legal amidst allegations from President Trump that Libra could facilitate ...

Budget 2019: Income tax collection target too steep, say experts Business StandardThe income tax collection target was still far from realistic despite the number being revised downwards in the full Budget from the interim Budget projection, ...

Young, mega-rich - and demanding to pay more tax BBC NewsLiesel Pritzker Simmons is fabulously wealthy. But this member of one of America's richest families is also uneasy about it. "It's time for us who are blessed with ...

Syntax and the “sin tax”: the power of narratives for health - The BMJ The BMJAs we reach the final weeks of Boris Johnson and Jeremy Hunt's campaigns for Number 10, we are starting to see some of the policies that they may adopt if ...

Finance ministry justifies higher taxes for super rich Business TodayFlights between India, Europe to increase by over 25% from winters: Air France-KLM, Deficient monsoon hits Kharif crops, acreage down 27% so far: Govt, ...

India's hedge funds threatened by higher taxes Economic TimesDomestic hedge funds have taken seven years to reach $6 billion in investment commitments.

22 States Considered Eliminating the ‘Tampon Tax’ This Year. Here’s What Happened. The New York TimesMenstrual products are subject to sales taxes in 35 states, and lawmakers' efforts to exempt them have foundered. Now supporters of 'menstrual equity' are ...

Tax fraud of about ₹38,000 crore detected last year LivemintNEW DELHI: Tax officials detected ₹37,946 crore worth of tax fraud in 2018-19 and ₹6,520 crore in the April-June period of the current financial year after the ...

Tax department tightens the noose on offenders LivemintCBDT's stiffer tax provision will ensure serious offenders can't escape prosecution.The guidelines restrict the number of times a person can file a compounding ...

Budget 2019: Will the Banking Cash Transaction Tax make a comeback? Economic TimesThe government is considering introducing a tax on cash withdrawal on persons who withdraw more than Rs 10 lakh in a year and implement an Aadhaar based ...

Trump’s Tax Law Threatened TurboTax’s Profits. So the Company Started Charging the Disabled, the Unemployed and Students. ProPublicaThe move by TurboTax maker Intuit to charge more lower-income customers has helped boost revenue.

Budget 2019: Sitharaman urged to bring cigarette taxation to pre-GST level Business StandardThe Federation of All India Farmer Associations (FAIFA) has urged Finance Minister Nirmala Sitharaman to correct an error in cigarette taxation under the new ...

Maximise revenue, minimise tax The Indian ExpressIndia has just one policy option to advance private investment and become a $5 trillion economy — reduce corporate tax rate for all firms to 22 per cent, reduce ...

Budget unlikely to up Rs 2.5 lakh income tax exemption limit India TodayThe current basic income tax exemption limit of Rs 2.5 lakh is unlikely to be raised in the forthcoming full Budget 2019-20, according to informed sources, as the ...

Income tax burden weighs on the salaried class even as costs climb LivemintNEW DELHI: I generally don't talk about salary, but any salaried employee earning ₹1 lakh a month in a metro city is living a hand-to-mouth situation, says ...

Report: WSOP Main Event Final Table Players Pay Almost $12 Million in Taxes PokerNews.comA review of federally licensed tax professional Russ Fox's annual report on how much those making the WSOP Main Event final table will have to pay in taxes.

LTCG makes filing Income Tax returns tough Times of IndiaIndia Business News: A recent update in the software utility that enables taxpayers to file their returns online has created hurdles for taxpayers who have earned ...

Banks approach Delhi HC against ₹38,000 crore service tax demand LivemintNew Delhi: Thirteen banks have moved Delhi High court against a government demand for *service* tax to the tune of of ₹38,000 crore. Their claim is that the ...

Soon, Tax Dept to send SMS on 18 types of high-value transactions BusinessLineSoon, you will receive an SMS from the Income Tax Department if you quote your Permanent Account Number (PAN) for 18 types of financial transaction where it ...

The government’s budget math faces a tax challenge LivemintInvoking the analogy of an elephant that is satisfied with a small offering of rice and doesn't trample upon the paddy fields, India's new finance minister, Nirmala ...

Refundable tax credits would help alleviate poverty The Conversation - CanadaWe have entered a new election cycle, and it appears that a discussion about tax policy will consist primarily of bickering and court challenges around the ...

Boris Johnson says tax cuts bring in revenue. But we now know that’s a myth The GuardianHe cites the Laffer curve theory – yet it's no more credible than a magic money tree, says Guardian columnist Polly Toynbee.

AOC's policy adviser wants to tax high incomes at 99% Business InsiderDan Riffle, Rep. Alexandria Ocasio-Cortez's senior policy adviser, believes that income over a certain threshold should be taxed at 99%, he told Vox.

Scottish income tax £941m short of forecast BBC NewsThe amount of income tax revenue raised by the Scottish government in 2017/18 went up by 1.8% but was still £941m short of original forecasts. The HMRC ...

Sensex plunges 560 points, Nifty at 2-month low; FPI taxes, Q1 earnings weigh on investor sentiment The Financial ExpressThe headline indices Sensex and Nifty registered their third biggest intra-day fall in 2019 on Friday, even as FPI taxes and tepid Q1 earnings spooked investor ...

Income tax benefits on NPS explained in 5 points LivemintThe government has made National Pension System or NPS more attractive by announcing new income tax benefits in Budget 2019 for investors in the pension ...

Cuomo Signs a Bill to Allow Release of Trump’s State Tax Returns The New York TimesAs the battle over President Trump's federal taxes intensifies in Washington, Gov. Andrew M. Cuomo of New York signed a bill on Monday to allow ...

I Havent Filed a Tax Return with IRS in Years, What Do I Do?

Tax Tax