What to do if you have Unfiled Tax Returns
How much time does the IRS have to come after me for unfiled returns?
If you do not file a return, the IRS technically has forever to assess taxes as the statute of limitations of assessment (ASED) does not begin to run. But, some good news! The IRS policy is that if you do decide to get up to date and file old returns, you only need to go back and file for the past 6 years. In some circumstances, you may have to go back a little bit further.
What if you complete my returns and find out I owe money? And what if I can’t afford to pay it?
Even if we find that you owe money, we would still file the return. If you don't have the money to pay, this could be the best time for us to settle your back taxes....not in the future when you have money. The only way to settle a tax debt, is to first have the IRS recognize it with a tax return.
What if you file my returns and I find out the IRS owes me money?
This is another reason why we want to act quickly. The rules are written totally in the IRS's favor. While the IRS has forever to assess you if you don't file, you only have 3 years from the date the tax return was due, or two years since the date of payment to file a return to claim a refund.
The IRS hasn’t contacted me about my unfiled tax returns. Why should I bother?
While having criminal charges filed against you are a (small) possibility, there is a much bigger reason you should file. When you don’t file your taxes, the IRS basically files them on your behalf using things like 1099s, W-2s, and K-1s. This is called a ‘Substitute Filed Return”. More often than not, the SFR shows that you have a much bigger liability than you actually do! We are able to file much more accurate returns for you by factoring in deductions.
Also, if they file an SFR and you do not sign it, that means they have forever to file and assess you more.
What if I don’t have any records, how can you file my return?
Sometimes people don’t hold on to their records. Sometimes they lose them in a flood or fire. Whatever the case, there is hope. W-2s, 1099s, 1098s, K-1s, etc. are all going to be on your IRS records. We can also get an IRS report on you called a W & I Transcript that can tell us all of your income and withholdings.
Next, we use your bank records. We also use an IRS approved tool to get industry averages if you are missing records. It helps us get general guidelines of costs, deductions, etc. It is completely legal and a tool we use in audits when there are missing records. One of the reasons people hire us is because we are able to complete tax returns that others thought too difficult or impossible to complete.
Can you help with unfiled tax returns for my business, too?
Absolutely. We handle both individual and business tax returns. All of our tax prep is done in house, so we can prepare and file your returns, and help you get into a payment plan if you need to.
I haven't filed taxes in 10 years. I haven't taxes in 20 years. Have I dug a hole that is too deep to get out of?
No. Chances are, you problem is not as bad as you think. We've help out people just like you get a tax problem behind them.
We have a proven track record of success in helping thousands of taxpayers dig out of their tax troubles. With over 30 years of experience, we've developed a process. It works.
Contact us to set up your free, confidential consultation. Call us at 888-727-8796 or email info@irsmedic.com.
