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Unfiled Tax Returns & “Substitute For Return”
When a taxpayer does not file a tax return the IRS is forced to adopt what they call an “SFR” (Substitute for Return). It allows the IRS to use bank deposits as your gross income. That can be detrimental to a taxpayer since it doesn't grant you to have any deductions while outrageously inflating your tax liability.
Just for the purpose of an example, when your business has gross receipts of $500,000, your tax will be based off of $500,000 without being able to expense anything. If you didn't even turn a profit with your business that year, you would still owe over $150,000 in taxes (not including interest and penalties you would also have to pay). On top of that, the Statute of Limitations will not begin when an SFR is entered by the IRS. The actual return itself must be filed in order for the statute to begin. Tax Relief Specialists can help you from falling into that trap by filing a business return showing your true operating costs of $585,000. Once the IRS puts our return through and reverses the SFR, your tax liability gets reduced to zero.
When returns get filed on time, they are usually given a three year Statute of Limitations. This means that the IRS will have 3 years to audit, assess any additional taxes and/or bring a court order to the taxpayer, if necessary. So, if you file a 2008 return in April, 2009, the IRS generally has until April 2012 to adjust for additional taxes. In May, 2013 the IRS is usually stopped from collecting additional taxes for 2008. Also, a 10 year statute for collecting taxes has simultaneously started to run and only has 7 years of life left. Therefore, if your 2008 return hasn't been filed then the statute will not begin until you have filed it. With that said, the taxpayer will still be susceptible to an adjustment of additional taxes, audit and the IRS trying to collect taxes owed. Call us right now and any one of our tax professionals will explain the entire process to you. They will give you a free and private consultation about your specific situation at hand. Feel free to ask them about any questions or concerns you may have.
Call now at 1-800-405-8360
We promise it will be a painless and beneficial experience!
As soon as you call, a personal tax professional will be attached specifically to your account from start to finish. Your assigned tax professional will go over the particulars of your account and outline the best path to take for your situation. Please tell them about any certified mail, or any other concerning forms of communication you may have received, so they can prepare your account and address all of the issues that you currently have. Do not second guess this opportunity. Now is the time to get that tax relief you need. Give us a call and help is on the way! |
