Delinquint Taxes? Unfiled Returns? We Can Help!
We can prepare your unfiled returns. We have all the forms, software, etc. to prepare returns for prior years. Missing some or all of your tax documents (W-2, 1099, 1098, etc.)? We can often get this information for you!
There is no statute of limitations on the filing of income tax returns. However, as a practical matter, the IRS generally isn’t looking for returns more than 6 years past due. For tax years that old the IRS usually prepares a Substitute for Return (SFR). Because a SFR typically doesn’t reflect all the exemptions, deductions, etc. you are entitled to, by filing these returns you can often substantially reduce the tax you owe.
There is a statute of limitations to claim your refund. You must file your return within 3 years (federal) or 4 years (state) of the due date to claim a refund. If you don’t, the refund is lost and won’t be applied to other tax debts.
Some people don’t file their tax returns because they can’t pay what they owe. This is a mistake. A failure to file penalty of 5% per month (capped at 25%) is assessed on the balance due. If you file this penalty is avoided even if you don’t pay what you owe.