Here's some of the most common scenarios we saw last year for people and businesses that haven't filed their tax returns:
- Relative died - hasn't filed. If you are an "heir," and your relative died, you could be made liable if they haven't filed their tax returns. WATAX solution: Research your relative's IRS record (after receiving documentation showing you are their executor). Determine the minimum of returns need to be filed. File them and pay taxes due.
- Haven't filed in years, self-employed, little to no assets. WATAX solution: see if you meet the criteria for Offer in Compromise. You'd then file 6 to 8 years of returns, settle with the IRS while restoring your Social Security credits for a substantial discount to boot.
- Haven't filed, self-employed, assets and high disposable income. WATAX solution: because your assets would disqualify you from an Offer in Compromise, you could try filing and paying ONLY your most recent years and see if that satisfies the IRS system.
- Haven't filed, worker - expect refunds. WATAX solution: file your most recent returns where you qualify for refunds and see if that satisfies the IRS system.
- Haven't filed, expatriate living in foreign country. WATAX solution: foreign earned income exclusion or foreign tax credit usually puts you out of owing taxes. Filing six years satisfies IRS and almost always closes door to scrutiny.