UNFILED TAX RETURNS FRAUGHT WITH PROBLEMS

 

         The IRS is authorized to prepare tax returns, known as “substitute for returns”, on your behalf if you do not file them.  Of course, IRS prepared returns will not give you the benefit of itemized or other deductions, credits, and personal or dependency exemptions.  Nor would you receive the benefit of favorable filing status, which would result in a lower tax rate, such as, head of household or married filing jointly.  Additionally, gross proceeds of sales of property, for example, stock sales reported by third parties, would be taxed as gain without the benefit of reduction for stock basis. Substantial tax penalties may be imposed for failure to file a return.  In addition, if you were entitled to a refund, the IRS would not even prepare a return for you.  Further to qualify for any collection program, such as an installment agreement, currently uncollectible status and offer in compromise, all returns must be filed.  Generally, the IRS can not assess a tax three years after a tax return is filed.  However, if the IRS prepared the tax return for you (i.e., SFR), the three year period does not begin to run. Additionally, it is a crime not to file a tax return.  For these, as well as other reasons, you would want to file all unfiled tax returns as soon as possible. However, a Domestic Voluntary Disclosure may very well be in order before the returns are filed. Contact Thomas F. DiLullo, Esq. to determine the best choice of action.

 

 

 

 

Thomas F. DiLullo, P.C.

A Hackensack law firm serving Bergen County, as well as New Jersey, New York and Connecticut, and Federal tax cases nationwide.

LAW OFFICES OF
THOMAS F. DILULLO
TAX ATTORNEY & C.P.A.
THOMAS F. DILULLO, C.P.A., M.B.A., J.D., AND LL.M. (in taxation)
PREPARATION IS
THE KEY TO
SUCCESS
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Thomas F. DiLullo presents the materials and information contained in this Web site for informational
purposes only and they do not constitute legal advice.  All of the facts and circumstances of each case must be
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seeking the advice of an attorney licensed to practice law in your jurisdiction.  The materials contained in this
Web site do not create and are not intended to create an attorney-client relationship between you and Thomas
F. DiLullo.

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