My income tax refund was intercepted because of outstanding student loans. The following year, I had a back injury and couldn't work. I lived in low income housing and depended on a church food bank for food. So I didn't file. The following year, I was able to work, but low income, and again didn't file, unable to pay to have my taxes done. I still cannot afford a professional preparer to catch me up, and am afraid to talk to IRS. What now?
2007-08-17 06:37:22 · 8 answers · asked by invisiblewoman 2 in Business & Finance ➔ Taxes ➔ United States
Call them. THey know where you are now and this won't get better. IF you actually owe them, they can set up a payment plan.
2007-08-17 06:45:10 · answer #1 · answered by wizjp 7 · 1⤊ 0⤋
If you are low income, IRS will prepare your tax return at no charge, providing you have all your paperwork together. They also have access to all your records. Approach them in a humble way and they will assist you. Another suggestion is to contact the United Way office in your area. I know in the Detroit area, they fund The Accounting Aid Society for which they provide tax service at no charge.
IRS is not as bad as people say they are. However, it is better for you to square things away than for them to come after you. I sincerely think you have some good news coming.
In the year that you had earned a low amount of income could create a nice refund for you by obtaining earned income tax credits.
Good luck to you.
2007-08-17 08:01:40 · answer #2 · answered by IRENE THE BOOKIE 3 · 0⤊ 0⤋
If you had little or no income, you probably owe little or no tax, which means the IRS doesn't have much incentive to go after you. They'd rather go after the big-time cheaters.
But it still would be to your advantage to file returns for all the years that you haven't filed. If you had any taxes withheld during the time that you were working, you may have refunds due to you. Talk to the church that helped you, and see if they can refer you to someone that can help you. You'll probably need to see a CPA or tax attorney for this. Maybe there's one in the congregation that can help you, or someone at the local Legal Aid agency.
2007-08-17 06:45:47 · answer #3 · answered by Ralfcoder 7 · 0⤊ 0⤋
How many years are you behind? The year you didn't work there should be no tax and catching it up would be really easy. Then next year you worked low income, did you have taxes withheld form your paycheck, if so you can probably get it back, or you can have it go to your outstanding school loans if they are not up to date. The IRS isn't really the mean bunch of blood hound most people think they are, and they can work with you to catch up. If you really are as destitute as it sounds and you deserve the help as your story makes you look, they will help you get into the right program to help you get back on your feet. if you hide now, you will suffer higher consequences latter, or you will be hiding forever.
2007-08-17 06:47:24 · answer #4 · answered by Russ D 2 · 0⤊ 0⤋
You should definately contact them. Because of your past employment situation and low income. With the new tax laws and breaks given each year for low income and disabled workers, you are probably entitled to money during those year(s) that you did not file your taxes. The IRS usually go after individuals who purposely neglect or fail to pay taxes ranging from multiple thousands to the millions in back taxes. What the IRS does not do is contact tax payers who are owed money. It is for this reason that you should contact them. If you are worried about paying to have your taxes prepared for you; VITA (Volunteer Income Tax Assistance) is a tax counseling program that is free of charge to individuals who are of low to moderate incomes. I was a VITA volunteer years ago and have prepared many tax returns, plus both of my parents retired from the IRS after over 25 years of service and I have learned quite a bit from them.
2007-08-17 08:49:44 · answer #5 · answered by David R 2 · 0⤊ 0⤋
You may not be in any trouble at all. If you did not owe tax for any of those years because of your low income the IRS could care less. You might look for some type of legal aide service in your area.
2007-08-17 06:55:04 · answer #6 · answered by ? 6 · 0⤊ 0⤋
You might not have even owed any taxes or been required to file for those missing years.
Next tax season look for a VITA site near you - they'll prepare your tax return at no charge. If you don't find a way to get the prior years returns done before then, they will most likely do those also. See http://www.irs.gov/individuals/article/0,,id=107626,00.html for info on the VITA and TCE programs
2007-08-17 09:24:18 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
In general, if you make less than the sum of the Standard Deduction and the Personal Exemption, filing is not required.
But if you paid tax during the year to the Federal and State governments, you should file to get your refund.
You can do your own taxes. Go get the forms and instruction pamphlets from www.irs.gov.
2007-08-17 09:50:49 · answer #8 · answered by Anonymous · 0⤊ 0⤋