Income taxes have to be the most aggravating tax advised by government. Not only do you have to present your income and deductions in the best light like a defense attorney, but you have to play the role of judge to make sure you have faithfully and honestly applied the tax law. Then to top it off, you have had to execute the sentence on yourself by paying any tax shortfall.
So you can imagine why people put off doing their tax returns as long as possible.
To make matters worse the IRS can take years to notify you that you are not up to date with your tax filings. By that time the failure to file and pay penalties are adding on top of any amount that you owe. If you are getting a refund the IRS is fine with letting the 3 years go by so that they don’t have to refund the amount back to you.
The IRS has the option of filing your tax return for you, called a “substitute for a return” or SFR. As generous as this is for the IRS to do this for you it comes at a cost. They will put the return together in the most favorable light for the government, which is always to your disadvantage.
If you want to get caught up with your tax return either before the IRS catches up with you or any potential refund expires give us a call. We can get records from the IRS to fill in any blanks that you might have in your tax records. Business records can often be reconstructed to allow a tax return to be filed.