AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size. I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All others will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, You Money Magazine
Education/Credentials BBA, Baylor University.
Awards and Honors My website http://www.IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 9/6/2007 Subject: filing income taxes
Question QUESTION: this year my life has changed quite a bit and my wife and i have never filled a joint return before. We now owne our first home together and are contributing into my wifes 401k at work. My question is what forms other then my w2 will we need this year for fileing our return. Like i said this is new to both of us and we want to make sure we do it right. in the past i just usd turbo tax because it was just a simole punch in the numbers game and now with the new investments im confused
ANSWER: I have many people come to me who have not filed in a few years and they are terrified of the possible consequences. While I do not want to make light of the situation, the fact is, if you come forward and file your delinquent tax returns, the chances of any problems beyond the penalties and interest are remote. The IRS does not prosecute late filers who come forward with their returns except in rare cases.
But how far back should you go? Well, the stock answer is, as far back as you have not filed. This is naive however. How far back you should go depends on the facts and circumstances of your case. But in general, you should go back six years unless:
(1) The IRS has filed a substitute for return against you for an earlier year and the liability they have calculated is much greater than if you filed the return.
or
(2) After the returns are filed, you will need to enter into an installment agreement or want to make an Offer In Compromise. This is because they will not generally consider either one if you have returns outstanding.
It may be that you do not have to file for some years if you did not have a filing requirement. The 1040 instructions will help you determine if you have a filing requirement.
Since you are likely to owe tax after the returns are filed, I recommend you hire an experienced professional to help you file the returns and deal with IRS collection issues. I would be happy to assist you. I can prepare the returns and deal with the collections issues.
If you want to prepare them yourself, you will need the 1040 or one of its versions. Without knowing more about your situation, I cannot tell you what other forms may be needed. You can go to http:/www.IRS.gov to download any forms.
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QUESTION: you didnt even touch base with that response it had nothing to do with my question what so ever if possible could you review it and see what you think
Answer I am sorry perhaps I didn't understand the question. I thought you were asking what to do if you had not filed in a while.
(1) Filing a joint return does not change the forms you have been using. You just put both names on it and elect joint filing on the form.
(2) Having a 401K does not require you to do anything. The 401K contribution will be reflected on your W-2.
(3) Owning a home may allow you to itemize in which case you will use a Schedule A to claim the interest and real estate taxes. You can also claim charitable contributions and certain other expenses that you will find listed on the Schedule A.
Based on the information you have provided, the only forms you would need would be a 1040 and a Schedule A. Should you have any 1099 income you may need another form but I can't tell you which one without knowing what the type income is.
I hope I got it this time. Sorry for the confusion.
I do not see in any way that I was impolite. Have a good day.
