Do you have back taxes to file?

Michelle Divan, EA
Michelle Divan, EA

Hi – It’s Michelle Divan! I represent taxpayers in Denver, CO  – and Nationwide – who have civil tax matters.  I have recently seen and uptick in clients coming to me who have not filed tax returns, some for may years.  In fact, the non-filer issue is a major priority for the IRS.  The IRS has stated publicly that they have identified more than 7 Million taxpayers who have failed to file returns, and the IRS plans to roll out an initiative to target those tax scofflaws.

In addition, it is worth noting that the willful failure to file a tax return is a federal tax crime under the Internal Revenue Code’s Section 7203.

So what can non-filers do, and how can I help them get their tax return issue resolved with the IRS?  It depends on why they failed to file in the first place.

If the failure to file the tax return was a lack of money (i.e., they realized they would be unable to pay the tax liability and chose not to file) then I can get those returns filed and begin working on a tax resolution for them to resolve the back tax balance, this might include Installment Agreements, Offer-in-Compromise (OIC,) or have the account placed in uncollectable status.

If the taxpayer’s failure to file was intentional or for other reason, such as cash payments to undocumented workers, the way to resolve the issue and avoid a criminal tax referral is by utilizing the IRS’ Voluntary Disclosure program.  By doing a voluntary disclosure the taxpayer can come in and disclose the issue without fear of a criminal tax referral.

If you or someone you know has unfiled tax returns or some other federal tax issue, please feel free to contact me at either (720) 900-1822 or by email at [email protected].