As honest tax resolution services providers we know that a lot of people stay under the misconception that if they won’t file a tax return at the end of the year, they won’t have any financial liability to the IRS. What they don’t realize is that the IRS has complete authority to file their taxes on their behalf if they don’t get back taxes help when they have the chance. The IRS maintains a complete record of income for each individual and uses it to make an estimate about the amount of tax that might be applicable to him or her.
However, the Internal Revenue Service does not file your taxes without informing you prior to their actions. Based on your record, the department makes an educated guess regarding the amount of tax a person would have to pay, which is known as a proposed assessment. Once a proposed assessment is made, the IRS will send you a notice along with this statement, allowing you to take back taxes help and file them. You have to respond to this notice, communicating to the IRS that you would be filing your back taxes yourself; otherwise you can stand to lose a lot financially.
The biggest issue with these proposed assessments is that they might be holding you liable to a considerably bigger amount than you would actually owe if you file your own taxes. This happens because the proposed assessments are based on estimates rather than accurate calculations and might not be true to the actual tax situation of an individual. These proposed assessments might exclude a lot of tax deductions that you might be eligible for, increasing the tax amount you are required to pay quite substantially; a situation you can easily rectify by getting back taxes help.
In case you don’t respond to the notice of proposed assessment and don’t opt for back taxes help soon, the IRS will take matters into their own hands and file your taxes for you. The tax filed by the IRS itself is called a Substitute for Return, and is based on the tax amount calculated during the proposed assessment. The SFR is filed when the notice of proposed assessment goes unnoticed by an individual, making the exact dollar amount estimated by the IRS final, and the collection process is set into action.
Once a substitute is filed, you will become liable to pay the tax amount stated in it without getting a chance to account for your actual financial situation. By enabling the IRS to file your taxes for you, you make yourself liable to a much larger amount of money than you might actually owe, making your financial situation even worse. For the next ten years, the IRS will have the authority to claim these taxes.
The best way to counter the situation is to get back taxes help and file your back taxes immediately after you receive a notice of proposed assessment. Once you file the taxes, the IRS will be obligated to accept them and disregard their own assessments. Since your filed assessments are signed by you, they clearly indicate that you have agreed to that specific liability, making it more valid than the liability created by the IRS. Even if you are unable to make the tax payment in full currently, you should make sure that your taxes are filed by you and not by the IRS so that you can include the deductions carefully.
If you need more information about our accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.