Tax identity theft happens when your social security number is compromised for the purposes of tax fraud, where a refund or a credit can be falsely claimed. This leads to issues relating to filing your taxes. If your personal information is compromised, we can help you file the appropriate documents to process your claim with the IRS.

Owing back taxes can lead to the IRS seizing your wages, social security income, property, and your bank accounts until you pay what you owe. You have 3 years to claim a refund but you are still responsible to pay any taxes owed. Start with filing the most current tax year and work your way back to previous years unfiled. Once you have the total amount of back taxes that is owed, you can request an installment agreement with the IRS with Form 9465 if you can’t make the payment within 120 days.

Failure to file tax returns can lead to major penalties and interests, which can lead to imprisonment. This is referred to as tax evasion. In this case, filing the tax return as soon as possible will help you avoid more penalties and interests. If you owe a balance, you can explore payment options with the IRS.

Amendments are needed if there are any additional changes, documents, or corrections needed to an existing or previously filed tax return. Changes such as adding or removing a dependent, claiming a missed credit, or adding income are common reasons to file Form 1040X.

Audits occur when the IRS wishes to look into the information that was submitted with your filed tax return. Any discrepancies or incomplete information can lead to an audit. If you receive a notice from the IRS requesting more information, call us so we can help you provide the necessary documentation.

If you need more time to file your taxes before the deadline, you may need an extension. Extensions can be requested through Form 4868. This will give you 6 months to file your taxes, but you will still be responsible for any interest payments if a balance is owed. If there is a balance due, there is a late-filing penalty each month of up to 5% of the amount due (up to 25%) and a monthly penalty of 0.5% of your unpaid taxes for failure to make your payment on time.

You will usually receive your refund in 21 days if you file electronically and choose to receive your refund via direct deposit. If you file by mail, processing times will delay your refund further.

A legitimate tax preparer will have an IRS Preparer Tax Identification Number and will sign your tax return with that number. Knowing this information will help you avoid being scammed and will protect your valuable information.