You, usually, have 3 years after you file a tax return, before, you won’t be audited. The count starts “after” you have filed, the actual return.

If you did not filed a tax return seven or eight years back, and you have not heard from the IRS, you may be OK. However, since “change” is the current motto, I wouldn’t count on previous patterns.

Usually, after so many years, your tax records are no longer accessible by the IRS, computer. (they are placed in storage) I only know this, because, when a taxpayer ask about tax information, over 10 years back, the IRS usually, lets me know, there is no need to concern myself with those, particular tax years.

I can’t bring myself to explain, to the IRS, that I live in California, where the Tax Agency, often and actively, collects taxes, up to 15 years back! (I’m sure they know it, I just don’t want to give them any ideas)

The IRS says, it has 3 years, after you file the return, to complete an audit. Then they say, they have double that amount of time, if they believe a taxpayer, under reported their income. (Visit irs.gov for complete details)

If the IRS suspects fraud, there is no time limit for an audit.

Because, my job is to prepare, and, help taxpayers with un-filed returns, I try to stay away from words like, tax evasion, fraud and under reporting of income, non-filer. Fortunately, for me, the collection process for un-filed returns, usually, remains the same. As a tax professional, we contact the IRS, and they ID us, using several factors. Information is shared, based upon what the taxpayer has authorized.

Most taxpayer start looking for someone to help them with un-filed tax returns, after, the IRS has contacted them, or sent a “Notice of Intent to Levy”

Remember those, words, I try to stay away from? When the IRS has to contact you first, concerning, un-filed tax returns, it is much easier for those words, to come up, than if you filed your returns, “before” the IRS contacted you! (It is a Federal crime not to file a tax return, when required to do so)

Discover how you can have your past due tax returns prepared, correctly, to help avoid the possibility of a tax audit. Visit http://Taxeswilltravel.com for affordable, and secure, online tax preperation. IRS Installment Agreement Request included.

Article Source:

http://EzineArticles.com/?expert=Cassandra_Ingraham

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Tax Office Rapid Refund Changes For The 2010 Tax Season

IRS removes debt indicator for the coming 2010 tax season – Is your tax service ready?

What is the IRS debt indicator? This is the information provided to banks and software transmitters that allows them to determine if a taxpayer has prior outstanding federal debt. This debt can come from a number of different agencies but the most common ones are unpaid child support, back federal or state tax debt, unpaid student loans, and veteran affairs debt.

What does this mean for the tax industry? This translates to the availability of Refund Anticipation Loans (RALs) being more limited than in the past. Without this debt indicator being provided to lending institutions, it will be more difficult to determine the worthiness of a taxpayer to receive a RAL. Banks have stated that they intend to continue offering RALs to tax payers and that this would force credit checks to become more heavily relied upon in the approval process. Most Industry insiders see this action causing a raise in price for RALs and a decrease in approval rates as more people are considered a risk to the bank’s lending criteria.

As a tax preparation service owner this will affect you. You might see customers that have always been approved for instant or rapid refunds of their tax returns in prior years getting turned down this coming year. It is important that you are prepared to explain why this is the case. Most banks offer a customer service line for taxpayers who wish to get details as to their denial.

This still leaves the door wide open for the 1-2 week bank product refund option know as Refund Anticipation Checks (RAC) or Electronic Refund Checks (ERCs). However, the IRS has hinted that they are attempting to put in place a method for
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un-banked taxpayers to easily create a checking account to have their refunds deposited into and also a way for tax preparers to have their fees withheld directly from the refund. This refund and taxpayer tool would lead to the transition away from bank products in general, not just the RALs.

Staying ahead of information like this can save you some headaches this tax season. If you explain the situation to clients early on in the process, they will be more accepting of the new policies.

By: jake r

Article Directory: http://www.articledashboard.com

If you would like more info on setting up your own office and offering refund anticipation loans, visit www.federaldirecttax.com and see what Federal Direct can provide. We make getting into the tax preparation business quick and affordable.

Click here for a Free market demographics report for anyone interested in seeing if their area is ripe for a new tax office! No obligation, free for anyone who requests it! Pick a zip code and we’ll break it down for you!

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I hope you’ve been enjoying my posts lately. I thought I might do something different today and rustle up a few bits of info from around the WWW. These are some of the news items and blog posts that have been popular over the last few weeks. Leave me your thoughts.

UBS Customers May Have `Mere Hours’ to Report to IRS as Swiss Seal …

“We will immediately follow up on the information we receive from the Swiss and we will vigorously enforce the laws against those who have attempted to evade their tax responsibilities by hiding their assets offshore,” he said. …

Taxation of Political Action Committee and IRS Filing Requirements

… I.R.C. Section 527 generally are required to file (1) an initial notice with the IRS on Form 8871, (2) a periodic report regarding contributions and expenditures on Form 8872, (3) annual income tax returns on Form 1120-POL and (4) annual information returns on Form 990. Organizations required to report to the Federal Election Commission as political committees are not required to file notices and reports with the IRS in order to be tax-exempt under I.R.C. Section 527 . …

We are being audited. We have a tax attorney who prepares our …

You can report him to the IRS, but unless they have other reports of his doing the same thing with other people, you'd have a hard time showing that you didn't provide him with the false information. And YOU signed it as correct. …

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