I don’t want to (or don’t have the money to) file my 1040.
Whats the worst that can happen?

Some of you think along these lines. There are ramifications to all decisions you make. Lets examine this decision.

  1. If you choose not to file…
    You leave open the statute of limitations, which is an automatic 3 year period that the IRS can come in and audit your return, or question your deductions. When you file, you start the timer. After 3 years, the IRS generally cannot open a year (unless there is fraud– under-reporting of income, etc.) So it is wise to start the statute by filing.
  2. In the event money is owed… 
    You can always work out a deal with the IRS. If you can pay within a year, and most often within 24 months, extensions of time are automatic. Likely you will pay a nominal rate of interest. You can also file for an “installment agreement”, which allows you to make payment. Please feel free to discuss your individual facts and circumstances.
  3. In the event money is to be refunded…
    This could be critical if returns are not filed. Just recently we encountered a client who hasn’t filed, who left over 10,000 on the table by allowing the statute of limitations to expire. Don’t do this! The IRS forces you to live by the sword but also die by the sword- if more than 3 years elapse, you cannot claim a refund. But we have attempted to make some modifications to preserve refunds- such as choosing the longest methods of depreciating assets, etc. Lets discuss what could work for you.

It is important not to ignore this responsibility, as choices have ramifications. Filing is not as complicated as you think- but leave it to us to help you. Entrust us with your problems and we will do our utmost to take care of you so you can be worry free. Please call us at 847-677-0224 today.