How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds
Ask a Tax question
Type Your Tax Question Here...
characters left:
Tax Professionals are Online Now

Tax Returns Help

A tax return is a document that a taxpayer needs to fill in and file with state or federal authorities that explains what their tax liability is for the year based on their income. These forms can appear a little complicated to fill in since they not only total the income made but also show additions and subtractions depending on the taxpayer’s actions. That is why many people prefer to take the help of a professional while filing their returns. Listed below are a few questions answered by the Experts on filing tax returns.

Does it become a Certified Public Accountant’s (CPA) responsibility to keep tax returns and supporting documentation for three years?

CPAs are not required to keep tax returns and supporting documentation for their clients. The responsibility for this actually lies with the actual taxpayer. . CPAs often, however, keep records for their clients for a certain period of time. This could sometimes extend to for as long as seven years. While all tax returns must be retained for as long as they matter to federal tax law, the three year rule is followed because the IRS typically does not initiate audits on taxes filed over three years back.

I have a C Corporation and have not filed tax returns for many years although my employment taxes have been paid on time. Can the IRS come after me for returns that go back more than nine years?

The IRS can collect returns that date back to more than nine years ago. Typically, the statute of limitations is three years past the due date of the tax return or the date the return was filed. The IRS will choose whichever the later date is. Since you haven’t filed the tax returns for those years, the statute of limitations would not yet have begun for those years.

According to my experience, the IRS freezes a refund in cases where Earned Income Credit (EIC) is filed by a person with a criminal record. Does this apply only to individuals with a criminal background?

Individuals with a criminal record are not the only people targeted by the IRS to have their refunds delayed because of a tax return audit. There are many other taxpayers that have had their tax returns held up or audited. They include people who owe tax money from past years, individuals who have abused the EIC before and have been prohibited from filing for it even after the time period in which they are not allowed to file has past and so on.

I am self-employed and haven’t filed tax returns for the past ten years. The IRS has not sent me a Form 1099 either during this time. What can I do now?

It is unlikely the IRS will prosecute you unless you owe an extremely large amount of money. Individuals are required to file returns for each year that their income meets the tax filing requirements. Even if you don’t have all the records that you need to file your tax returns, the IRS can provide that for you. They can go as far back as ten years to retrieve records. You would need to contact the IRS and request your Wage and Income Transcripts. You would also need to follow up on your state returns in the same way.

If you were due a refund for any of the years beyond the last three years, those refunds will have already been forfeited. The IRS only allows three years to claim a refund.

There are a few additional things to keep in mind. In many cases, the IRS files your return if you haven’t done it within a specified period. This may increase your tax liability since the deductions you qualify for are not added. Yet, very often, just filing the returns can reduce this liability. If you are not able to pay it all at one time, you can ask to be put on an installment plan.

Finally, interest and penalties will have continued to accrue on any unpaid balances that you owe. If you have a reasonable cause, you could try and ask for a penalty abatement to remove some of these penalties. If you are not comfortable filing on your own, it would be sensible to hire the services of a professional to help you with the process.

My S Corporation didn’t have any income or expenses for a year and I did not file tax returns for that tax year. I was sent a notice two years after this. Can I negotiate the penalty amount now?

The IRS is not responsible for reminding a taxpayer or corporation to file their tax returns. Claiming ignorance is not a viable option. Even though your corporation did not have any income or expenses, you are still required to file a tax return until it is officially dissolved. The IRS typically contacts taxpayers two-three years after a return is due. You may be able to negotiate penalty amounts only if you can show a reasonable cause.

Ask a Tax question
Type Your Tax Question Here...
characters left:
Tax Professionals are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Ron

    ASE Certified Technician

    Satisfied Customers:

    21226
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
< Last | Next >
  • http://ww2.justanswer.com/uploads/FO/fordguy4u/2011-12-17_222940_HPIM1257.64x64.JPG Ron's Avatar

    Ron

    ASE Certified Technician

    Satisfied Customers:

    21226
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
  • http://ww2.justanswer.com/uploads/lyeung1/2010-07-25_032152_tn_IMG_0241.JPG Dr. Y.'s Avatar

    Dr. Y.

    Urologist

    Satisfied Customers:

    18400
    I am fellowship trained specializing in general urology and reconstructive urology.
  • http://ww2.justanswer.com/uploads/docjohn174/2008-12-13_170143_johnask.jpg John's Avatar

    John

    Home Appliance Technician

    Satisfied Customers:

    13453
    Appliance repair business owner for over 43 years.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8496
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/dermdoc19/2010-09-30_160749_Photo_122807_015.JPG dermdoc19's Avatar

    dermdoc19

    Dermatologist

    Satisfied Customers:

    3861
    30 years practice in general and cosmetic dermatology
  • http://ww2.justanswer.com/uploads/BI/birddoctor/2012-6-22_173214_birddoctor.64x64.png Dr. Pat's Avatar

    Dr. Pat

    Bird Veterinarian

    Satisfied Customers:

    3384
    25+ years working primarily or exclusively with birds
  • http://ww2.justanswer.com/uploads/RY/rydergar/2012-6-6_192240_IMG0328.64x64.JPG Dr. Gary's Avatar

    Dr. Gary

    Cat Veterinarian

    Satisfied Customers:

    3299
    DVM, Emergency Veterinarian, BS (Physiology)