The IRS, or Internal Revenue Service, considers unfiled tax returns to be a crime. Even if you’re not able to pay, it’s better to file and set up payment arrangments than to avoid filing altogether. If you have unfiled tax returns, take these steps to get IRS tax debt relief.
File Your Returns Right Away
Gather the documentation you need and file your outstanding tax returns as soon as possible. If you wait too long, the IRS can file what is called a Substitute for Return (SFR) for you. When this happens, you lose out on deductions and the IRS only estimates what your income is based on the last information they have. Even if your income is lower than it used to be, you could still owe taxes that were calculated based on the higher amount.
Forfeiture of Returns After Three Years
You have three years to file a tax return before you forfeit any return that you may be owed. If you file a tax return four years after the year it was due, the IRS is not required to pay out any refunds, even if your return shows that you would have gotten one. However, if you file within the three-year statute of limitations, you will still receive your return, although it may be applied to any existing tax debt that you owe.
When to Get Help with Unfiled Tax Returns
The IRS always knows if you haven’t filed your tax returns and it’s only a matter of time before they decide to prosecute. If you have unfiled tax returns, you may be looking at a mountain of crushing debt. Tribute Tax Defense can help. We can help you gather necessary documentation to file outstanding returns, make payment arrangements with the IRS, and help defend you against aggressive action that the IRS may attempt to take. Contact us today for a consultation to discuss your unique situation and find out what your next step should be.