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SAN MATEO, CA 94402-5052
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Email: kevin@regotaxlaw.com
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San Mateo, CA: Before you can propose a solution to your IRS tax problems, you must be in tax compliance with the IRS.
Clients rarely have just one year of tax problems to deal with. Often, IRS tax problems stretch over several years.
Please note that before you can apply for an IRS Collection alternative, you must be in tax compliance. That means:
- For the current tax year you are having enough tax withholding out of your paycheck to reasonably cover your federal tax obligations.
- If you are self-employed, you are making quarterly estimated payment deposits to reasonably cover your federal tax obligations.
- If you are an employer, you are making your required federal payroll deposits as well as payments to cover income tax obligations.
But what if you haven't filed in several years?
Do you have to go back to the beginning of time to file your returns?
Happily, you will be pleased to know that GENERALLY the IRS requires only the past SIX YEARS of tax returns to be filed in order to be in compliance. Therefore, unless requested by the IRS, to get a collection alternative such as an Offer in Compromise, Installment Agreement, or Currently Non-Collectable status, only the past 6 years are needed to be filed.
Please realize it MAY be to your advantage to file older returns, especially if the IRS filed a substitute-for-return (SFR) for you.
Bottom line: You can't suddenly drop out of the sky with the IRS and start asking for special considerations when you have not filed tax returns in years. You must be in compliance so the IRS has the requisite knowledge of your tax situation to ensure you qualify for the collection alternative you are proposing.
Non-filers as well as those seeking collection alternatives should always consult with a tax professional to analyze the situation before making a plan. If you are in the greater San Francisco Bay Area, please feel free to contact me with any questions.
If you are not sure what you owe, for what years you owe, or even if you filed a tax return, reach out to me no matter where you live for a comprehensive IRS Transcript analysis. The solution to your tax problems begins with knowledge of your situation.
Kevin Rego
SAN MATEO, CA
650.933.5222
