They're calling it Operation Fresh Start, but what it really means is an opportunity for hundreds, maybe even thousands, of Utahns whose tax obligations slipped past them to get straight with Uncle Sam . . . and Uncle Norm, too.
The Internal Revenue Service and the Utah State Tax Commission have teamed up on the Fresh Start program to allow those who failed to file tax returns in one or more past years to "get right" with both agencies without fear of criminal penalties in most cases and without increasing their chances of being audited.According to Carol Fay, IRS district director, most "nonfilers" are people with low or middle incomes who suffered illness, loss of their spouse, severe financial troubles or other problems beyond their control.
Nationally, the IRS says some 6 million people are not filing tax returns, more than half of them self-employed. A recent IRS study estimates that the average nonfiler who wants a fresh start hasn't filed a tax return for four years.
Filing old returns does not automatically mean facing a large tax bill, said Fay, noting that when the Denver IRS office offered a similar program, nearly a third of those opting for a fresh start had refunds coming. For those who had to pay, the average tax bill was below $1,000.
State Tax Commission and IRS employees will offer one-on-one service to Utah taxpayers wanting to participate in Operation Fresh Start on Thursday and Friday, Sept. 24-25, at three sites: the Salt Lake City IRS Building, 465 S. 400 East from 8 a.m. to 6:30 p.m.; the Ogden Federal Building, 324 25th St., and the Utah County Administration Building, Room L-900, 100 East Center St., Provo, 8 a.m. to 4 p.m.
The Salt Lake IRS office will also be open Saturday, Sept. 26, 9 a.m. to 12:30 p.m.
Employees at the sites will have past-year tax forms available and will help taxpayers prepare the returns, said Fay. If the filer owes tax but cannot pay, the staff can, in most cases, set up payment plans on the spot. If the taxpayer's income and withholding records are incomplete, copies of Forms W-2 and 1099 can be obtained by the IRS.
The two tax agencies stressed that while they always offer help on tax matters, Operation Fresh Start is directed at those who have dropped out but want to voluntarily return to the tax system.
"If a taxpayer voluntarily files late returns, without prior contact by the IRS or the state, criminal charges are not likely," the two agencies said in a joint release. Also, they said, volunteering for the program will not increase the chances of an audit.
Those volunteering for the program should make all possible effort to bring the following with them to the nearest office:
- Federal and state tax packages received in the mail.
- W-2 forms from all employers, if available, and any other income information.
- Social Security numbers for all family members with ages of one year or older.
- Receipts for payments to doctors, health insurance, interest, taxes, contributions and business expenses.
- Names, addresses and identification numbers for child-care providers and the amount paid them.
- Copy of last tax return filed, if available.
For copies of pay records, call the IRS at 1-800-829-1040 to order documentation prior to the Sept. 24-26 program.
Volunteer centers are also being scheduled for October when members of the Utah Association of Certified Public Accountants, the Utah Society of Public Accountants, the National Association of Tax Practitioners, the Utah Bar Association and other tax professional organizations will be available for the program.