Minimizing The Consequences Of Unfiled Tax Returns
There are a number of reasons that taxpayers fail to file their tax returns on time, such as not understanding the filing requirement or the belief that not all records are available in order to file an accurate return. Or, there is an effort to evade the responsibility.
Recent technology advancements and greater interest in these taxpayers, described as “Non-Filers” means that the IRS is now targeting these taxpayers. Sometimes the IRS simply wants the returns to be filed; sometimes the IRS will initiate a criminal investigation.
Please call Mr. Leonard directly at 818-485-2115 to request a confidential consultation concerning your non-filing matter.
Substitute for Returns
If the IRS has tax information statements (i.e. 1099’s, W-2’s, etc.) which require you to file a tax return then the IRS will sometimes file on your behalf. These returns are called “Substitute For Returns” and are based upon the information returns which have been filed with the Service.
There is a risk with accepting the liability stated on the Substitute for Return. First, the IRS at any time can make another assessment based upon further information obtained. The fact that the Substitute for Return has been assessed does not change the fact that you are still considered a “Non-Filer.” Lastly, these tax liabilities do not qualify to be discharged in bankruptcy. If the IRS has assessed your tax liabilities you still need a qualified tax professional to review your situation and provide an action plan to resolve these tax problems, including perhaps filing original tax returns.
The conversations that you have with an accountant, enrolled agent or tax return preparers are not privileged. Accordingly, you have a serious conflict in that you want to make full disclosure to your accountant but there could be serious negative ramifications. The solution is to retain a tax attorney whereby the attorney-client privilege will allow full disclosure of sensitive matters without worrying that such conversations are not privileged. The attorney-client privilege is an important aspect of representing and defending a taxpayer with unfiled returns or unpaid taxes.
Call for a Free Consultation with a Tax Lawyer
Do not hesitate to call 818-485-2115 to arrange a consultation with Mr. Leonard. We are based in Woodland Hills and proudly serve clients in Los Angeles, the San Fernando Valley and other communities across the country.