If you realize that you have not filed your tax returns and you are years outside of the designated reporting window, you may want to hold off on filing them late until you speak with a trustworthy unfiled taxes attorney. Especially if you have significant financial assets, the IRS might already have taken action against you. Before you do anything, work with a lawyer on requesting transcripts for unfiled taxes in Washington DC.
It is important to request taxpayer transcripts because it will give an idea as to what information the IRS already has for that particular taxpayer and what action, if any, has already been taken in regard to the unfiled tax returns. Whether it is an account transcript, a wage and income transcript, or a tax return transcript, those documents are going to quickly determine the history and severity of that taxpayer’s situation.
An account transcript shows all of the activity for a particular IRS form in a year for a taxpayer. It will be able to show when a tax return was filed, when payments were made, any IRS enforcements that occurred, if applicable, and any other official action taken by the IRS. It is important to request transcripts so that a Washington DC attorney can see what the IRS has done or has not done. Getting these transcripts is crucial to formulating a strategy to resolve the tax issues being discussed.
A wage and income transcript is a yearly transcript provided by the IRS that compiles all third-party tax forms that were filed for an individual taxpayer on a yearly basis, such as Form W2 and 1099s. While account transcripts can go back for many years, wage and income transcripts are only available for the last eight years.
Tax return transcripts are a computer-generated condensed version of the tax return that the IRS received, not a photocopy of the return filed. It will show the sum totals of various line items of the tax return as reported and as calculated by the computer. If the IRS made any changes, it would show those changes with numbers as well. A tax return transcript is only available for the most recent three years.
All three of these tax returns are critical for a taxpayer to request. It is recommended that they first request an account transcript because it is the broadest. However, all these documents are valuable when crafting a strategy and it is not a great additional time commitment to also request the other transcripts when requesting the initial one.
A tax attorney can make a difference when getting information from the IRS because they are familiar with all of the various procedures that the IRS has. A tax attorney could pull IRS transcripts online through a secure portal. They could also call the practitioner line and get ahold of someone at the IRS much more easily and quicker than a taxpayer can. Taxpayers have the option to pull their own transcripts via the IRS website; however, the benefit of a tax attorney is being able to fully read and understand what the transcripts are saying.
Whether it is a virtual meeting or an in-person meeting, it will be most effective for the taxpayer to gather any IRS notices, any prior correspondence they sent to the IRS, and any recent tax returns for their consultation with a lawyer. It would also help expedite the first meeting if the taxpayer could put together a short narrative of the timeline of the tax issues. This makes it easier to identify what the resolution options could be.
You will not know what your best path forward will be unless you know what the IRS is aware of regarding your account. Requesting transcripts for unfiled taxes in Washington DC is a necessary step in that process. Reach out to our tax law firm and speak with a lawyer to explain your situation.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.