Affordable IRS Tax Experts, after one free tax consult we can ease your mind and take away your worry.
Many of these taxpayers have a fear of filing back tax returns thinking the IRS’s is going come out and put them in jail.
As a former IRS agent and teaching instructor I have worked hundreds if not thousands of cases both as a former agent and being in private practice.
You’ll hear advice from all sorts of tax professionals on the issue of “how far back should I file my on file for back tax years.”
The good news is, as a general rule you do not have to go back that far.
IRS has a policy statement regarding delinquent tax returns.
1.2.14.1.18 (08-04-2006)
Policy Statement 5-133
1. Delinquent returns—enforcement of filing requirements
2. Taxpayers failing to file tax returns will be requested to prepare and file all such returns except in instances where there is an indication that the taxpayer’s failure to file the required return or returns was willful or if there is any other indication of fraud.
All delinquent returns submitted by a taxpayer, whether upon his/her own initiative or at the request of a Service representative, will be accepted. However, if indications of wilfulness or fraud exist, the special procedures for handling such returns must be followed.
3. Where it is determined that required returns have not been filed, the extent to which compliance for prior years will be enforced will be determined by reference to factors ensuring compliance and evenhanded administration of staffing and other Service resources.
4. Factors to be taken into account include, but are not limited to: prior history of noncompliance, existence of income from illegal sources, effect upon voluntary compliance, anticipated revenue, and collectibility, in relation to the time and effort required to determine tax due.
Consideration will also be given any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved.
5. Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years.
Enforcement beyond such period will not be undertaken without prior managerial approval.
Also, if delinquency procedures are not to be enforced for the full six-year period of delinquency, prior managerial approval must be secured.
Did You lose a Possible Tax Refunds
The bad news is many taxpayers who had withholding taken out have lost a refund checks. You can file and claim refunds however for the last three years.
Also if you not filed your W-2s and tax returns you can lose valuable Social Security credit.
How Many Years Should I File For Back Taxes + What happens if you have lost your tax records?
If you have back tax returns to prepare IRS has income transcripts available to prepare your tax returns.
The IRS keeps all back W-2s and 1099’s on record for the past seven years. For those of you who need to file back tax returns you can simply call us and we can help reconstruct your tax returns from little or no records.
As former IRS agents we have learned to prepare tax returns under reconstructive methods.
Why does IRS only require back 6 years?
The answer is very simple, manpower.
As a general rule, the only time IRS will go past six years is if a person has significant assets or can pay all the back years. In those types of cases IRS may ask you to file all your tax returns.
But as a general rule, there are so many outstanding cases, so much money to be collected and so many back tax returns that have to be filed, the IRS has put boundaries on past-due tax years is six. if there is fraud involved there is no statute.
What Happens If You Owe Back Taxes
Do not be afraid if you owe back taxes.
The Internal Revenue Service will simply take a financial statement on form 433F or 433A and make a determination how they will want the back taxes paid.
As a general rule, after IRS reviews your financial statement they will either place your case into a currently not collectible status if your expenses exceed your income, ask you to make a monthly installment payment after they apply the national standards or they may suggest that you consider an offer in compromise to settle your case.
Will IRS go after me criminally If I do not File Back Taxes?
The general rule of thumb is to contact IRS before IRS knocks on the door.
Once you have come forth on a voluntary basis it is extremely doubtful that IRS will ever go after any taxpayer criminally unless there is fraud involved.
Remember the IRS wants voluntary compliance and our tax system is based on that principle.
Unless unique situations exist do not be stuck in criminal fear. In the entire United States, and abroad, the IRS as a general rule convicts a total of 3300 taxpayers for a variety of criminal charges per year.
Keep in mind, if you have committed tax fraud this is a different story.
Call us today for a free tax consult.You’ll speak to true IRS tax professional and experts who could truly solve your problem. You will never have to speak to IRS.
Since 1982, A+ rated by the Better Business Bureau, over 206 years of professional tax experience.
How Many Years Should I File For Back Taxes + Affordable Former IRS Tax Help + Settle With IRS
