Taxpayers who have failed to file their tax returns for one or more years due to various reasons may face overwhelming challenges when trying to file all their missing tax years at once. Missing important records, personal hardship, or neglect are some of the many reasons people fall behind in filing their taxes. However, there are ways to approach the problem of unfiled tax returns, and seeking low cost tax relief can be one of them.
If you fail to file your tax return, you may receive late penalties and your refund could be delayed or even forfeited if filed late enough. The IRS will assess a penalty equal to 5% of any unpaid taxes for every month that a tax return goes unpaid, which will max out at 25%. If you need to file for an extension on your taxes to avoid these penalties, speak to a professional consultant.
Consistently filing late can trigger an IRS investigation, which can take some time and consequently delay your tax refund, and may result in a refund being forfeited depending on the fines. The IRS rarely goes past six years for non-filing enforcement, and for the most part, delinquent returns and SFR enforcement actions are completed within three years after the due date of the return.
To resolve unfiled tax return problems, it is crucial to gather all the information needed to file the past-due return by contacting the IRS and requesting your wage and income scripts, complete your return accurately, and submit it to the appropriate IRS unit. Keep an eye on the return processing and other compliance activities by contacting the appropriate IRS unit to ensure the IRS processed your return.
Low cost tax relief can help you in this situation by preparing past returns using various substitute sources when there are missing records. These returns should be filed as soon as possible to avoid accumulated compounding interest. Additionally, if returns have not been filed for the three most recent tax years, those returns should be prepared immediately to claim any refunds that may be due.
If you need assistance with a tax return, Low Cost Tax Relief can provide licensed professionals to help you file your taxes accurately and on time.