Every Tues morning our tax team gets together virtually to discuss client questions and strategize new solutions. It’s a great way for all of us to check in and use the power of the experience of our team.
One of the trends we noticed over the past few months is the large number of people who are contacting us who haven’t filed tax returns over the past few years.
As we’re helping them through this tricky tax issue, we’ve looked at what went wrong. What makes people who always pay their taxes and comply with the rules, suddenly stop?
For a lot of the people, it’s because the downturn caught them unaware and they were so busy trying to keep their investments and businesses afloat that they lost control. Others knew they lost money, a lot of it, and figured it became less of a priority to file. And still others simply didn’t have the money to pay a tax pro.
If you haven’t filed for a while, here are some tips.
- File before the IRS catches you. This will be the best time you have to negotiate some leniency in penalties and interest.
- Go back 6 years if you have years of back taxes due. The IRS may require you to go back further if they feel fraud was involved, but 6 years is a place to start.
- Get the returns done as soon as possible. The IRS is launching a massive program designed to find non-filers.
By the way, just for fun, we added up the years of business experience on the phone call. Are you ready for this? How about almost 200 years! But maybe it’s a little more important to look at what the average professional TAX experience our people have. That number is 20 years per person. That’s a lot of experience to have on your side.