Dealing With Unfiled Back Tax Returns
How long can the IRS take to come after me or my business if I didn’t file a return?
If you didn’t file returns, and you should have, there is no statute of limitations. The IRS can go back decades. However, if you voluntarily come forward and clean up your unfiled taxes, the IRS requires you only go back 6-10 years. We will help negotiate the shortest period possible with the IRS on a voluntary plan.
What if I owe a lot of money when you complete my back taxes?
The only way to settle a tax debt with the IRS – whether it is a payment plan, an offer in compromise, or a currently not collectible status, is to make sure all of your filings are current. Once we know the damage, we can help you, and the IRS develop a plan to get you out of debt.
What if I am owed a refund?
If you don’t file taxes, you only have three years to make a refund application from the date the tax return was due two years from the date the tax was assessed. It is important, especially if you may be owed money back with an EITC (Earned Income Tax Credit) and are lower-income, to file these back taxes as soon as possible to get the money due to you.
I haven’t heard from the IRS about my back taxes. Should I do anything at this point?
In short…yes. The IRS receives many documents from people who paid you money – like 1099’s, W-2’s, etc. They will prepare a tax return and file it on your behalf based on the information they have. That often short changes you on deductions, exemptions, and credits and starts the interest and penalty clock running. We can get a tax transcript for you and see what the results are – and then work to fix this on your behalf. Don’t let the IRS by your tax preparer.
What if I don’t have any records??
As noted above, the IRS has transcript records of things like 1099’s and W-2’s. We will go to these sources to understand what was reported for you.
We will work with you to contact your bank and get old bank records. We can use certain industry averages or location averages if records have been lost or destroyed. The bottom line is that the IRS wants you to comply, and if you work with them, you can often get a better result than trying to hide from them.
Are you able to help with my business and payroll taxes?
We work with individuals and businesses to resolve their tax situations – we have over 25 years of experience managing the business and payroll tax process and focusing our practice on small business owners. We can absolutely help.