I hope you all had a spectacular Fourth of July, we enjoyed the fireworks over Lake Murray here in beautiful San Diego. As we settle back into the daily grind, let’s talk about a crucial issue that many overlook—what happens when you haven’t filed your taxes for several years.
Imagine this: you’ve missed filing your taxes. Not just for one year, but for several. This isn’t just a small oversight; it can feel like a massive weight hanging over you. Today, we’re going to address one of the most powerful tools at your disposal if you’re a non-filer: the IRS Wage and Earning Reports.
Why You Might Not Have a Tax Problem, But a Filing Problem
During my consultations, I often meet people who are terrified they’re in deep trouble with the IRS. But here’s a little secret: many of you might not actually have a tax problem; you might just have a filing problem. Yes, it sounds less daunting when you put it that way, doesn’t it?
The Magic of Wage and Earning Reports
For many of my clients, especially those who have worked standard W-2 jobs and have simply fallen behind on their paperwork, the solution might be simpler than you think. The IRS keeps a record of all your reported earnings through what’s called Wage and Earning Reports. These documents compile all the information from forms like W-2s, 1099s, and other tax documents that employers and clients file to report what they’ve paid you.
How These Reports Can Help You
- Identify What You’ve Earned: These reports provide a clear picture of your earnings over the years. This is invaluable if you’ve lost your own copies or never kept records in the first place.
- Facilitate Filing Back Taxes: With accurate income information, you can retroactively file your tax returns. This isn’t just about compliance; it’s about potentially unlocking refunds you didn’t know you had coming.
- Assess Potential Liabilities: If it turns out you do owe money, having all the correct information can help you or your tax professional create an accurate return and minimize what you owe. Sometimes, it’s much less than expected.
- Set the Stage for Negotiations: If you’re facing penalties and interest, being armed with correct and comprehensive data allows tax professionals like myself to negotiate effectively with the IRS. We can often reduce these penalties or set up manageable payment plans.
Taking Action
So, what’s your next step if you’re a non-filer who’s feeling overwhelmed? First, don’t panic. Second, consider retrieving your Wage and Earning Reports from the IRS. We offer this service as the first step in solving your Tax Resolution Case.
Need Help?
Navigating back taxes and dealing with the IRS can be daunting, but you don’t have to do it alone. If you’re unsure where to start or what to do next, I’m here to help.
Stay tuned for more content, possibly even some YouTube videos where I’ll dive deeper into these and other tax issues. Let’s turn that filing problem into a solution today!
Andrew Samaniego, EA, CTRC, MSCTA
Andrew Samaniego Tax Planning & Resolution
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