As the National Debt Increases, So Does IRS's Interest in Un-Filed Tax Returns

The IRS by it's own admission sends out over 2Reconstruction of supporting documentation to
million notices, each year, to non filers who showcomplete a more accurate return can be
up in the IRS computer due to wages, interestaccomplished simply by using "best guest
and mortgage interest reported.estimates"
The major reasons most taxpayers miss theExample of generating a 'best guest estimate": If
April 15th and the October 15th extension, filinga taxpayer was in business during one of the
date, is because of major changes in theiryears in which taxes were not files, it is save to
personal lives, such as illness, lost of employment,say that the taxpayer's cell phone bill (expenses)
death in the immediate family and depression.can be reconstructed, by finding out the monthly
Regardless of the reasons, there are othercost of the plan, the carrier and other particulars
factors that come into play after a taxpayer hasthat would have caused the bill to go up or down.
missed filing dates for one, two, three, or moreMultiplying this amount by the number of months
years.the taxpayer was in business and you have
Factors such as:created a more accurate way to reconstruct tax
1. Can't find the records needed to file the return.information for un filed tax returns.
2. Fear or concern over how much they mayThese same online tax services can prepare an
oweInstallment Agreement request, that once
3. Concerns that they may not have the moneyaccepted by the IRS, will allow the taxpayer to
to pay the taxes duepay monthly installments, including penalties and
4. Belief that if they say nothing, nothing will beinterest.
said.The belief that the IRS will suddenly go away is
5. Don't know where to find the forms, can't findunreal. The IRS has 10 years to collect a debt and
the software for the previous years or not surein some cases, longer. They will not go way.
what to do with the software once they find it.Taxpayers who have a fear of speaking to the
The good news is, there are now, online, taxIRS, can use the online service, to request
services who specialize in preparing un filed taxinformation from the IRS, to prepare the un-filed
returns.taxes.