Question: I haven't filed for several years. Should I file?

Answer: You should file. There are several reasons why you should file:

•Filing tax returns and paying tax due or negotiating a settlement of tax due is good citizenship and our obligation in this country.
•Failing to file returns can jeopardize your future. You can have your assets seized or go to federal prison. If you file before the IRS gets to you, issues can usually be resolved without fear of criminal penalties.
•You cannot get student loans, buy or refinance a house or get credit from most lenders, without filing tax returns.
•State benefits such as unemployment compensation are based upon reported income.
•Social Security and Medicare are computed based upon an individual's lifetime earnings. Some of these earnings are only reported to the federal government on your tax return.

The IRS has improved its database and its ability to identify individuals who have not filed their tax returns. If you wait for the IRS to contact you, additional penalties and interest can increase what you owe quickly and substantially. If you file before they contact you, you will be in a better position to resolve your problems.

The IRS can impose civil and criminal penalties on individuals who fail to file. Not filing, or filing a fraudulent return, is a federal crime.

The law allows the IRS to file a Substitute For Return for individuals who do not file. Prior to preparing an SFR, the IRS will send three letters. If you still do not file, the IRS will prepare a return for you, based upon income information they have, with little or no deductions or expenses! They can then seize wages, pensions, Social Security or disability benefits to pay tax debt.

If the IRS has already filed a Substitute For Return for you, it is not too late for the professionals at TLS Associates to assist you in getting the deductions and refunds that may be due to you.

Another reason to file tax returns is if you are due a refund, in most cases, the IRS only allows you three years to claim it. On the other hand, the statute of limitations for the IRS to assess and collect any outstanding balances does not start until a return has been filed. Once a return has been filed, the IRS has ten years to collect the tax. This is true whether you filed the return or the IRS files the previously discussed Substitute For Return on your behalf.

What Should You Do Now? If you have one or more years of unfiled tax returns, call our office at (848)482-0807 and make an appointment to get your taxes filed.

Worried you may owe the IRS? Don't be. There are several payment options and other alternatives available for those unable to fully pay their tax liabilities.