Help with Unfiled Tax Returns

Years of Missing Tax Returns? We Can Help.

If you have old tax returns (5 or more years) that have not been filed, we have really simplified the process to get you back into good graces with the IRS and without any risk of alerting the IRS. As licensed tax practitioners, we can conduct a confidential check-up on your behalf to confirm what years need to be filed and even review a summary of all tax documents on file with the IRS (W-2s, 1099s, mortgage interest, etc.). This allows us to understand whether you can expect refunds or balances due and truly determine what needs to be done to get you back into full and complete compliance.

Within 24 hours, we will let you know of the findings and provide a quote so you can decide if you want our help in making sure everything is done properly. If you do decide to hire us, we will retrieve all of your tax documents so you can have 100% confidence that these returns will be prepared properly. It also guarantees the removal of any potential accuracy-related penalties or possible underreporting of income being claimed on the returns. If we are going to do this, let's do it right.

The 6-Year Lookback Rule

Typically, even if you have not filed a tax return in a very long time -- say 10 to 20 years -- we can utilize the 6-year lookback and get you into full IRS compliance by only having to file 6 years of returns. You probably do not have the records you would need to prepare a tax return from further back than that, and neither does the IRS. So even if you have not filed a tax return in 50 years, we will ensure you only have to file the most recent 6 to 7 tax years in order to have a clean bill of health with the IRS.

Need to File Returns (W-2 Employee)

If you are a W-2 employee and have not filed some old tax returns, Colonial Tax Consultants can make sure everything is handled properly so you are not stuck wondering if you are taking the proper steps.

If you need to file old returns, we will perform a confidential check-up for you at no charge to confirm what years need to be filed and even obtain all of your tax documents for you. You will not have to try and dig through old records and hope you have everything. We will make sure all returns directly match IRS records so you will never be hit with any accuracy-related penalties.

Once we confirm what has been reported as income and determine what years we need to file for IRS compliance, Colonial Tax Consultants will give you a quote to do this work so you can decide if you want our help in making sure it is all handled properly.

Often times the IRS will hope you do not file as they may have to issue you a refund. However, it is always a good idea to file all returns to protect from identity theft issues and avoid someone filing a return on your behalf that can really create a lot of issues with the IRS. Besides, why let the IRS keep your money if you are owed a refund?

Need to File Returns (1099 / Self-Employment)

If you are a 1099 employee, this is important -- please read. When you receive 1099s, you are considered to be "self-employed" and the IRS will, essentially, tax you as a business. We highly recommend that you take advantage of our free consultation as the IRS is going to be much more aggressive with you than they will be with a W-2 employee.

The IRS is aware you are not having taxes automatically withheld from your pay and they will actually file Substitute for Returns at the highest tax rate and without any expenses or deductions. This will inevitably result in very high balances that the IRS will start collecting against even though you really do not owe as much as the IRS has assessed against you.

If you are a 1099 employee and have not filed some returns, please reach out to Colonial Tax Consultants so we can see what has been reported as income, avoid any inflated balances, and make sure you are only held liable for any tax that may truly be owed. Once returns are prepared, we will determine what can be done to resolve these pending balances so you never have to fear aggressive collections from the IRS.

If you have not paid sufficient tax on any years that need to be filed and there are going to be balances owed to the IRS, Colonial Tax Consultants will provide a full outline of all available options in properly resolving these balances so you can start getting some peace of mind. You are only required to pay in back taxes whatever you show as an ability to pay without causing undue financial hardship. There is always recourse and we will find the solution that is most applicable to your tax situation.

What If the IRS Filed My Returns for Me (Substitute for Returns)

If the IRS or state has filed a Substitute for Return (also known as a 6020(b) return or "arbitrary assessment") for you, the numbers they came up with are almost certainly higher than what you actually owe. The IRS uses wage and income information reported by your employer, bank, and customers to determine your gross income, but since they are not aware of your filing status or any business or personal deductions, they will not give you credit for any of these. They essentially assume you were single, had no deductions or expenses, and wanted to be taxed at the highest tax rate.

In most cases you can override the numbers that the government has come up with by requesting a reconsideration and providing a copy of the tax return with the figures that you believe are accurate. Generally, the IRS will allow you to do so, but some states have time limits for filing the original return so you might be stuck with the figures they used. It is generally in your benefit to act quickly to correct their assessment rather than let it linger.

At Colonial Tax Consultants, we have tax software to prepare tax returns from as far back as 1998 and can prepare tax returns from earlier than that by hand. We are experts in recreating these older returns using wage and income information provided to us directly by the IRS and then conducting an in-depth interview to ensure that every deduction is found and every tax advantage is taken.

Steps Colonial Tax Consultants Takes to File Missing Returns

1. Discuss Where You Stand -- Call us so we can get a sense of what is out there and what you think you are dealing with.
2. Confidential IRS Check-Up -- We perform a confidential check-up with the IRS to learn what years need to be filed for compliance and obtain all tax documents on file.
3. Review All Information -- We review everything and get a sense of whether there will be refunds or balances owed for each year.
4. Explain the Findings -- We call you to explain all information so you know exactly what is going on and what needs to be done.
5. You Decide How to Proceed -- You decide whether you want our help in making sure it is all handled properly, or if you want to take the information we provide and handle it on your own.

What Happens If I Do Not File My Tax Returns?

If the IRS and state do not receive a tax return for you, their most likely response will be to file one for you. For the IRS, this process is called filing a Substitute for Return or a 6020(b) return. Some people may refer to these as "arbitrary assessments."

The IRS has a lot of information reported to them by your employer, your bank, and your customers. They will use this information to determine your gross income and file a return for you. Since they are not aware of your filing status or any business or personal deductions you can take, they will not give you credit for any of these. This will usually result in a return with a balance due substantially higher than what you actually owe.

Whatever number the IRS comes up with will usually be shared with the state that you resided in, and the state will then prepare a return for you as well, setting off a chain reaction.

Similar processes are used for business returns including wage withholding and sales tax, although the government typically has far less information available to them. In the case of payroll taxes, the IRS and states will typically use records of W-2s that you filed or unemployment information you reported to reconstruct a tax return. If none of these records are available, sometimes they will just take their best guess at it using your prior history to estimate what you owed. Once they do that, it is up to you to correct their figures.

If you need past-due tax returns prepared, call Colonial Tax Consultants today for a free consultation. Every consultation that we do includes a confidential check-up with the IRS to review the status of your account. During that call we can determine which returns actually need to be filed, and we can order the transcripts needed to prepare those returns, all free of charge.

Once all returns are filed and any balances owed are determined, we will outline every available option for resolving those balances so you can get back on track with confidence.