Tax Compliance

What Is Tax Compliance And Why Is It So Important?

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Tax Compliance means that the taxpayer has filed all returns due and owing as of
today. In order to be in filing compliance, all tax returns for the past 6 years have
to be filed. Also, the taxpayer must be current in making estimated tax payments,
which means:
• An employee is having sufficient withholding done so they will not owe
money at the end of the year;
• Self-Employed individuals have made this year’s estimated tax payments.
• Business have made their quarter payroll tax deposits.
For non-filers, or individuals who have back tax debts to the IRS, tax compliance
must be dealt with first before an Offer-in-Compromise or installment agreement
will even be considered by the IRS.
If you or someone you know has a tax issue, please feel free to contact me at (320)295-7479 or email me at randy@randystaxresolution.com

Getting Our Clients Compliant

What is a Non-Filer?

IRS Definition:
Habitual – Just does not file for whatever reason
Skip Filers – Files one year then skips one or more years, then files and repeats this process

    • Refunds may be at risk (RESD)
    • You’re giving the IRS free money

Stop Filers – Were compliant for a long time, then, all of a sudden stops filing again for whatever reason

Real World Definitions:
Procrastinators

    • Know they should file but need assistance and/or prompting 
    • They will typically respond and always indicate that they will cooperate when contacted by the IRS
    • Information is usually provided in a piecemeal fashion

 Uncooperative Non-Filers

    • UNOPENED ENVELOPES
    • They refuse to acknowledge and respond to correspondence (electronic or otherwise) and/or phone calls and, if contacted by the IRS, they will not cooperate
    • Tax protestors 

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