DFW Metroplex CPA Services
DFW Metroplex CPA Services
DFW Metroplex CPA Services
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DFW Metroplex CPA Services
  • Dallas / Fort Worth Metroplex CPA Services . . .

    We are the answer to your tax, accounting, business & personal bookkepping and financial planning needs.
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    Missing a deadline can be costly.
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Delinquent or Non-Filed Tax Returns

Dallas CPA Services

We Can Get Those Delinquent Returns Filed

Whether you have not filed last years return or are 10 years behind, we can bring you current in those non-filed returns. If you do not have the records to file, we can also help you reconstruct your tax return, especially if you were self-employed and have misplaced the records. We also prepare partnership, business and corporate returns.

If, after preparing the returns you owe taxes that you cannot pay, our firm can help you in negotiating with the IRS and the resolution of paying your back taxes. The IRSrequires taxpayers to be current in all filings before a levy can be released. Once current, an offer in compromise can be submitted (if you qualify), or an installment agreement can be arranged. We offer full representation throughout the preparation and collection process.

If you have one year or ten years that have not been filed, contact us and allow us to be your full service tax professionals.

Practical Reasons for filing your Past Returns and Why People Fail to File

There are numerous practical reasons to file tax returns. Whether buying a home or financing a business, copies of filed returns must be submitted to the lending institution. Social Security retirement and disability benefits as well as Medicare are all computed based on a person's lifetime earnings reported to the IRS and the Social Security Administration. State benefits such as unemployment compensation and industrial insurance are also based on reported income.

Why do otherwise law-abiding, conscientious citizens suddenly stop filing federal income tax returns? IRS research has shown taxpayers first fail to file a return in a year when circumstances change. For either emotional or financial reasons (or a combination of both), they are unable to prepare and file a return. The reason might even be procrastination. Whatever the reason, failure to take corrective action only compounds the problem.

When the next year's return is due, the taxpayer faces a dilemma. Will filing call attention to them? What about the forms needed to prepare the earlier return? What about the financial burden of paying taxes due in previous years? What if they have lost some of the records needed to prepare the earlier return? There is also the stress of worrying about being discovered and audited by the IRS.

Substitute Returns can be prepared by the IRS

The IRS continues to improve its database of income transactions and has increased its ability to identify people who have a filing requirement but have failed to file a return. The law allows the IRS to file a substitute return for people who do not voluntarily file. A series of letters is first sent explaining the possible action and the recourse available. If no return or other indication of disagreement such as a request to exercise appeal rights is received, the IRS then assumes you are single with no dependents and uses the standard deduction for the relevant year in determining the outstanding tax due. This return is created using all the income sources reported to the IRS by employers, vendors and so on. Any sales of stocks, bonds, or mutual funds are treated entirely as a short-term capital gain (which is taxed at your ordinary marginal tax bracket), without any consideration or offset for the cost of those securities. Once the tax assessment is made, the IRS will start pursuing your assets through liens, levies and garnishments. This means your bank account can be frozen, massive percentages taken from your paycheck and so on. The point being that you do not want to let delinquent tax return problems grow. If the IRS has already filed a substitute return, we recommended that you still file your tax return to correct for any additional items, such as dependents, to select the correct filing status, home mortgage interest, real estate taxes and the cost basis for any securities which you may have sold. The IRS generally allows you to correct or amend the return(s) they filed for you.

You can lose your refund if you fail to file a return after three years.

Another reason to file is because the clock is running on any refunds due. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within the three years, the money becomes the property of the U.S. Treasury. After the expiration of the refund statute, not only does the law prevent the issuance of a refund check, it also prevents the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid.

Statutes of Limitation

On the other hand, the statute of limitations for IRS to assess and collect any outstanding balances does not start until a return has been filed. In other words, there is no statute of limitations for assessing and collecting the tax if no return has been filed.

IRS Shift in Philosophy to get taxpayers back into the system

Starting in the late 90's, the IRS underwent a complete shift in philosophy when it came to dealing with taxpayer issues. Essentially, the agency stopped spending hundreds of hours of manpower to collect a few thousand dollars in taxes. Instead, the IRS came to the conclusion it was better in the long run to simply get taxpayers back into the system. This philosophy applies to delinquent tax returns, to wit, the IRS is more interested in getting you back in the system than beating you into the ground.

If you haven't filed tax returns for a few years, the first step is to have returns prepared for those years. You may have excellent records for those years, but this is fairly unlikely. If you don't, we can request copies of W-2s and third party vendor statements from the IRS, which essentially totals the income the IRS has on record for you for a particular year. Using these figures, tax returns can be prepared and filed.

Once you've created tax returns for the missing years, you may realize you don't have the money to pay the taxes. The IRS acknowledges this situation occurs frequently and we can assist you in setting set up a payment plan for the repayment of overdue taxes.

Penalty and Interest Assessments by the IRS

Failing to pay your past due taxes is technically a misdemeanor, for which you can be fined up to $25,000 for each delinquent tax year and possibly sent to prison for a maximum of one year. But the IRS is much more interested in getting you to pay your taxes than sending you to prison. So the IRS doesn't prosecute anyone who comes forward voluntarily to remedy the problem, unless there are signs of blatant fraud or you're a public figure who's drawn attention to your tax delinquency.

The IRS will, however, charge you penalties and interest for any tax you may end up owing for previous years. The "good" news is that the IRS can't assess penalties higher than 25 percent of the tax due for a particular year. But interest continues to accrue on top of the penalties, and adds up pretty quickly, especially for taxes several years overdue.

With our help, we may be able to persuade the IRS to cut down on the penalties owed if we can prove you had "reasonable cause" for not filing your prior year's tax return(s). Circumstances the IRS has considered as "reasonable cause" include:

  • Death of a family member
  • Mental illness
  • Bad advice from your accountant
  • Loss of records from Hurricanes or other natural disasters
  • Extended military service

Geoff Broyles CPA

Geoff Broyles CPA - Dallas CPA Tax & Accounting Services
Tax Services: Geoff Broyles CPA provides a wide range of proactive tax services for individuals, families and businesses throughout the Dallas/Ft. Worth area. We are committed to maintaining consistent communication throughout the year, allowing us to help our clients plan and make timely adjustments to any life changing events as they occur.
Geoff Broyles CPA - Dallas CPA Tax & Accounting Services
Geoff Broyles CPA - Dallas CPA Tax & Accounting Services
Business Services: As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits.
Geoff Broyles CPA - Dallas CPA Tax & Accounting Services
Geoff Broyles CPA - Dallas CPA Tax & Accounting Services
Personal Services: In addition to personal tax services, you get one-on-one guidance and a comprehensive financial plan that helps manage risk, improve performance, and ensure the growth and longevity of your wealth.
Geoff Broyles CPA - Dallas CPA Tax & Accounting Services
Geoff Broyles CPA
Sherman, Texas 75092
Tel: (903) 893-9977
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