Pennsylvania IRS Tax Attorney
Most people who fail to file one or more income tax returns do so, in part, because of emotionally stressful events or conditions. Divorce, financial hardship, catastrophic illness, and alcoholism are typical catalysts. People who have failed to file further procrastinate out of fear of financial consequences, along with the penalties and interest that will be assessed. Ultimately, however, the threat of criminal prosecution and fines is enough motivation to bring a wayward taxpayer back into the system. To resolve your tax problems before the IRS presses charges, forcing you to mount a criminal defense, speak to a IRS defense attorney in Pennsylvania before things get out of control.
Getting the information you need
Although most delinquent taxpayers have access to information about preparing a tax return via the IRS web site, they do not have the necessary forms or the knowledge of tax laws that apply. Any taxpayer can print copies of the last ten years of his tax returns from the web site, but a non-filer would not want to alert the IRS by doing so and risk enforced collection or criminal prosecution.
Returns and other information can be more safely obtained by contacting the Disclosure Office (which will not alert other arms of the IRS) or the Social Security Administration (which can provide the same W-2 and 1099 forms).
For a non-filer, it can be risky using an accountant to help prepare a tax return. That is because there is no accountant-taxpayer privilege and therefore nothing to prevent your accountant from being used as a witness by the IRS. The best way around this problem is to retain a Pennsylvania IRS tax lawyer, who in turn will hire an accountant and place him or her within the attorney-client privilege. Then the accountant cannot testify as a witness against the non-filer and any records regarding the non-filer are protected from disclosure.
Picking up the pieces for non-filers
Because there is a six-year limitation period for criminal prosecution for most tax offenses, a non-filer should begin with the earliest year when a return was not filed and work forward. In the event the IRS has begun to file Substitute for Returns (SFR), a non-filer should begin with the first SFR received. An SFR is basically a tax return filed by the IRS on behalf of a person who has not filed a return. An SFR is ultimately detrimental to the non-filer, because the IRS can choose the highest filing status and effectively deprive the non-filer of relevant exemptions or credits. More importantly, although an SFR is a valid return for collection purposes, it is not subject to the six-year statute of limitations. Once the SFR is filed, the taxpayer faces an unlimited period of tax liability.
Prepare and file a return immediately rather than responding to IRS questionnaires or correspondence seeking information. This prevents the IRS from using taxpayer correspondence as evidence in a criminal prosecution. Again, once an SFR has been received, it is important to file the return within the specified time period. Any delay can trigger additional consequences. For more information contact our Pennsylvania tax law firm to discuss.
Tax refunds for non-filers
Be aware that taxpayers are only eligible for tax refunds within the preceding three tax years. After April 15 of the third year, a refund is voluntarily waived to the government. Even refunds from within the last three years that exceed 300 dollars can be held by the IRS under the non-filer refund hold program. These refunds are applied against what the taxpayer owes. The rationale behind this procedure is that the loss of his or her refund will induce a non-filer back into compliance. It will also offset any liability owed on the delinquent return. Alternatively, a non-filer may notify the IRS that he did not meet the filing requirements. If his or her earnings fell below a certain level he or she was not required to file a tax return.
Schedule a free consultation with a Pennsylvania tax law attorney and take the first step to putting your tax problems behind you.
Contact us
Greg McCauley can help you get on the path to tax compliance and stop harassment by the IRS. Contact McCauley Law Offices, P.C. at 484-778-4055.
