IRS Filing substitute returns

[sutliffhl21]

What is the name of your state? Pa

I didnt file tax returns for 2003,2004 or 2005. 2003 I didnt think I made enough to file, but the IRS says I did. I didnt file becasue I was having someone else do it for me, but that person never did, and I got notices a few months ago from the IRS saying that they never recieved returns for those years. In 2003, I was claiming exempt from federal becasue at that point in time, and all the years prior, I didnt make enough to claim. Well, I never changed it, which was my own fault, but I accumulated a tax debt now from all the years to almost $ 11,000.00. I told them I was going to fax my returns 2 weeks ago, but I had my appendix out last week, and never did. I was going to fax it today, but I wasnt sure if its too late. My question is this. The IRS said that if they didnt get the returns, they would file substitute returns for me. Now, when they do this, and if I owe money, will they still send me a bill and still give me the option of doing an installment agreement, or will they immidiatley do a bank account levy and wage garnishment with no notice?

 

[LdiJ]

It would be foolish to allow the IRS to file substitute returns for you. That could easily result in you owing more taxes than you really owe.

Simply file your returns....use a tax professional if you aren't equipped to do it yourself.

You don't have to fax them anywhere, you can simply do them and mail them in. You don't know that you actually owe 11k until you do your returns.

Do it NOW. You may even be due refunds that you could lose if you delay....particularly for 2003.

 

[sutliffhl21]

Lets say I do end up owing. I was supposed to file and I told the IRS I was going to do it 2 weeks ago to fax them, but never did due to medical issues. Lets say they went ahead and filed the substitute returns and it turned out that I owed alot, would they send me a bill and give me the chance to do an installment agreement, or would they go right to levy and garnishment without billing me

 

[LdiJ]

Lets say I do end up owing. I was supposed to file and I told the IRS I was going to do it 2 weeks ago to fax them, but never did due to medical issues. Lets say they went ahead and filed the substitute returns and it turned out that I owed alot, would they send me a bill and give me the chance to do an installment agreement, or would they go right to levy and garnishment without billing me

You should still see a local tax preparer to have returns done. If it turns out that your actual returns differ from the IRS calculations, you can file amended returns.

However yes, if you have a tax liability that you cannot pay all at once, the IRS will generally work with you on an installment agreement. However, they may still go to levy as well.

Certainly getting returns filed ASAP would make you more credible with the IRS.

 

[abezon]

Stop borrowing trouble. File the returns immediately. If you do owe, you almost certainly owe less than the IRS says you do, & the interest & penalties for filing late & underpaying are based on the amount you owe.