Friend's fiance has not filed taxes in 10 yrs & wants to fix this - where should he start?

Question

He admitted this to her and they want this to be rectified before they marry; where should he begin? He of course doesn't want to get into trouble and is afraid of opening this can of worms. Does anyone know a good starting point or a good Q&A web site?

Answer 1

Usually when this happens, if you've never been contacted by the IRS it's because they think you paid in too much. You would have gotten a notice each year that this was not the case. (They have copies of all your W-2's and 1099's from all sources for each year.)

You can only claim refunds for the current year + three previous years (2005, 2004, 2003) by April 15. All other years have expired. Also, the IRS can only audit three years + the current unless they have a case for fraud. If you end up with refunds all of these years, you're likely safe.

You're going to need the correct tax forms for each year (the 1040 changed each year), the correct tax tables for each year, ALL of your income sources and amounts withheld for taxes, and as many deductions as you can find (if you itemize). You can print the forms from www.irs.gov (follow the link "forms and publications" at the top left.)

You can fill out a practice set just to see where you're at. If you have a refund on each one, there won't be any penalties or interest, you'll just get your refunds and you'll be up to date. If one of the years has a tax due, you'll need to fill out the penalty form for that year and send it in as well.

E-mail me if you have any questions. It's not too difficult to figure out. Don't go to a tax lawyer until you're convinced that you're in over your head. Trust me, you're not there yet.

Answer 2

Once he files the returns voluntarily with the IRS he can no longer be charged CRIMINALLY with failure to file. So He needs to file ASAP. He does not need an att'y. If there is tax due on any given year that return must be filed no matter what the year is. Refunds however will only be given for the past 3 years, so if returns are older than 3 yrs and have refunds due they need not be filed ,BUT still a good idea to file them to avoid IRS com,ing along later and demanding they be filed. If the tax due with penalties and interest is more than he can pay he may be a good candidite for an Offer in Compromise, whereby he offers an amt less than total tax due, to settle the entire debt. My suggestion is when ready to file take the returns to a local IRS office and ask to meet with a Revenue Officer. he can explain collection procedures and Offer in Compromise. When ever you talk to IRS get full name, title & PH # and write down gist of conversation and keep with tax records. If anyone in IRS is rude, not helpful, unreasonable demand to speak to supervisor. good luck.

Answer 3

First of all....he should get ORGANIZED!!!

Before going to a tax attourney he should have as much information as he can going in. That means....he needs his W2s from all those years and any other relevant data.

He will be penalized....but probably not prosecuted if he is actually going to follow through and file retroactively.

The attourney won't be able to help him unless he is organized going in. He will save A LOT of attorney fees if he tracks down lost W2s on his own.....if he can at all!!

I am amazed he hasn't been caught, yet!! Maybe he was due a refund most of those years....in which case the IRS probably doesn't care as much!!

Good luck to him!

Answer 4

Talk to a local tax Atty and get a consul.;they can give you an idea of what your looking at and what the possiblities are without any risks. Can't find one in the yellow pages, then call a lawyer referral service in your area to help you find one

Answer 5

Start with a tax lawyer.