Failure to file an income tax return: what's happening?

May 4, 2012 /24-7PressRelease / -The Internal Revenue Service requires that any person receiving income from any source must file an income tax return each year, with a few exceptions. If an individual is not a declaration of the income tax, the IRS will be place for them and then only send the due tax bill. First of all, this sounds somewhat beneficial to the service itself prepare and submit taxes, but this process has its disadvantages.

The IRS prepared-deposit is in no way a good substitute for a return to a taxpayer prepares and sends personally. These "ghost returns" is based solely on the income and the IRS does not include deductions or credits which a taxpayer may qualify. The IRS filed a substitute form 1040 based on reports of wages paid by an employer and statements from financial institutions for interest and dividend payments made to the taxpayer filing.

Once the IRS calculates revenue, he will then calculate the amount of the fees. He added then interest and a penalty for not filing. The taxpayer is then sent an invoice for the payment of the amount of the taxes, interest and penalties.

The IRS does not immediately prepare a substitute for return to a delinquent taxpayer. First of all, the IRS sends several letters Recalling the non - spinning to generate their income tax. After about a year of non-filing of IRS file a substitute return for this person.

With the availability of better technology, it has become much easier to the IRS identify the filers. The IRS is now an increasing amount of electronic accounts, reports of the different types of income. This allows the IRS to easily monitor those receiving income, but that are not file a return.

It is very unusual for a taxpayer to have no fresh compensation, deductions or credits to be applied to the taxable income or taxes owing. It is only by personally a statement that these offsets will be used to reduce taxes. Therefore, it is important for taxpayers fill out and submit their own return to avoid the IRS, filing Crown. In addition, if a substitute return is filed by the IRS, it is important not to ignore it. The taxpayer will have to work with the IRS to correct the situation in order to avoid the collection by the IRS efforts to collect the amount of the taxes owing under this substitute for return.

Taxes and default issues can be complicated and it is best to seek the advice of a tax lawyer if you think that there may be problems with your taxes.

Article provided by Law Office of Williams & Associates, P.C.
Visit us at the http://www.williamslawassociates.com/

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