Unpaid taxes the silent threat to your wallet and freedom.
Unpaid taxes the silent threat to your wallet and freedom.
The Internal Revenue Service IRS can criminally prosecute taxpayers for not filing a tax return. The statute of limitations for criminal prosecution is typically six years from the date of the violation. This means that if you haven't filed your tax returns for several years, the IRS can potentially prosecute you for each year you failed to file within the last six years.
How many years should I file? If you haven't filed in several years, it's crucial to consult with a tax professional to determine the best course of action. Generally, priority years the IRS typically focuses on the last six years when it comes to non-filing. Therefore, at a minimum, you should consider filing the last six years of tax returns to avoid potential criminal prosecution. Older tax returns while the focus is on the most recent six years, it's still a good idea to file older tax returns if you haven't. This can help in rectifying your tax record and potentially avoiding further complications.
Penalties and interest remember the longer you wait to file the more penalties and interest will accumulate on the owed amount. It's in your best interest to file as soon as possible to minimize these additional costs.
Refunds if you believe you might be owed a refund for any of the years you didn't file, you should act quickly. The IRS typically allows taxpayers to claim refunds only within three years from the due date of the return.
Taking the next steps if you're in this situation, it's essential to consult with a tax professional. An expert like Omar's Ambrano, Attorney at Law, can provide guidance tailored to your specific situation. They can help you understand the implications, potential penalties, and the best course of action.
Gather documentation start collecting all relevant financial documents for each year you didn't file. This includes W-2s, 1099s, and any other income-related documents.
File ASAP the sooner you file the better. Not only will this reduce potential penalties and interest, but it will also give you peace of mind.
Payment plans if you owe money and can't pay the full amount immediately, the IRS offers payment plans. A tax professional can guide you through this process.
While not filing tax returns can lead to significant complications, it's never too late to take corrective action. With the right guidance and a proactive approach, you can resolve your tax issues and move forward with confidence. Thank you.