Nobody really enjoys doing their taxes, but it’s something we all have to face. Unfortunately, it’s pretty easy to fall behind when it comes to filing those taxes, and when that happens, it can create a number of problems for you.
If you have unfiled tax returns, it might feel like there’s no solution, but you actually can remedy the situation. We can help you file past-due returns while still minimizing any liabilities — all to help you catch up and put the whole problem behind you.
What Should I Do if I Have Unfiled Tax Returns?
When you have unfiled taxes, the best path forward is to get them filed and play catchup. Naturally, there are some things you’ll have to do to make that work, but it can be distilled into a couple of easy steps.
First, you need information for your past-due returns. You can request this information from the IRS. Specifically, you want wage and income scripts.
When you have that information, you can fill out the unfiled tax returns and submit them to the IRS. You can even check the progress by contacting the IRS to see that they are processing your returns.
How Long Do You Have to Fix Unfiled Tax Returns?
If you have an unfiled tax return that still needs to be filed, how long is too long?
For the most part, the IRS only goes back six years for unfiled returns. Anything older than that might be difficult to correct as the IRS might not hang onto your wage and income scripts.
When it comes to delinquency, it is usually enforced within three years of the due date of the return.
There are exceptions — mostly based on whether or not you filed for an extension and whether or not your income was reported to the IRS by a third party (such as an employer).
What Are the Consequences of Unfiled Tax Returns?
When your returns are not filed by the due date, there is a price to pay. First and foremost, the IRS attaches late penalties to past-due returns. They will penalize you five percent for every month that the return is late. This penalty maxes out at 25 percent.
You can avoid these penalties by filing for an extension. If you’re past the extension dates, then the late fees will be applied.
On top of late fees, another consequence is that your refund can be delayed or even forfeited. The IRS will not issue a tax refund until after you have filed your returns. If the late fees and fines exceed your return, then the return will be forfeited to cover those costs.
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Get Help From Eagle Eye Tax & Accounting Services
If dealing with unfiled tax returns feels too difficult or overwhelming, help is available. Eagle Eye has been working in this field for years, and we can help you with your unfiled tax returns right here in Phoenix. We can also help you minimize any costs associated with that filling, and help you find a way to catch up. You don’t have to hide from your taxes anymore. Contact us today so we can help!