Jay Freeborne

by Jay Freeborne, Enrolled Agent

Here's some of the most common scenarios we saw last year for people and businesses that haven't filed their tax returns:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

For 30 years, WATAX helps people sort out their unfiled taxes and balance due issues. Call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you.

Registered members of the National Association of Enrolled Agents.

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