My husband has not filed his taxes for 3 years , we are expecting a refund this year What will happened?

Question

1. He worked as independent sales during that period of time so taxes were not deducted from the pay check.
2.Now were filling jointly and taxes were deducted last year. we are expecting a refund.
3. What IRS will do in this situation?


Thanks

Answer 1

The IRS will review your tax status from the information that they have available. If it looks like he would have been entitled to a refund for the past 3 years you'll probably get this year's refund. Expect a processing delay on your return, however.

If the IRS review indicates that tax might be due for the missing years, the IRS will prepare and file a "constructive return" in his name and send him a bill for any taxes, penalties and interest due. Any refund due from this tax year will be captured to offset that tax liability. If there's anything left, you'll get a check for that amount. If not, you'll get a bill for any balance due.

When the IRS prepares a constructive return on behalf of a taxpayer they do not claim any exemptions or deductions that you may be entitled to. For that reason it's best that he clear the backlog first before filing the 2006 return. That way you'll know where you stand and you'll get any exemptions and deductions that you're entitled to for the missing years.

Eventually the IRS is going to figure this all out. The bill will just get higher the longer you let it slide so it's best to clear it now and be done with it.

Answer 2

I wouldn't really count on that refund that you are expecting. If your husband did not file his taxes for 3 years, the IRS is going to want all of the taxes he should have paid plus interest and lots of penalties. I am sure this will more than cover your expected refund plus.

If he has a compelling reason why he didn't file for 3 years, they may accept all the taxes due with interest and penalties without putting him in jail.

Answer 3

It is unlikely that the IRS will issue you a refund. They may take all of the refund for back taxes and send you a letter. Or, they may hold the refund and require him to file all back years before they release any refund.

Get those back years filed no matter what. Even if future refunds are used to pay those taxes, filing will stop penalties for failure to file.

Answer 4

Oops, I gave Latigo a thumbs up incorrectly. If he made very little money over the last three years, he would not have to file. Just not owing taxes doesn't do it.

And yes, the IRS may wonder where he was the last 3 years and it won't be pleasant if they find out before he admits it.

Answer 5

If he received Form 1099-Misc from his employer, IRS also received copies so eventually you might get a letter of inquiry from IRS. If he did owe taxes he will then be subject to penalties for both late filing and for late payment.

On the other hand, just because he had earnings does not mean he had to file. He would have to do the tax return to find out. It could be that his taxable income (after standard deductions and exemptions are deducted) was too low to have any tax due. In that event, it is not necessary to file a return.

Answer 6

You will probably not get the refund but if you do better save it to pay all the back taxes and fines and interest
that will soon be coming in the mail.

Answer 7

If his net income was more than $400 per year, he will owe at least SS and Medicare tax.
Don't play games and make it come out to less than $400 per year, unless you are prepared to explain to the IRS how you managed to eat all those years, with no income.

Answer 8

Ooooh...pretty sure you'll be hearing from the IRS shortly. I would STOP expecting a refund and START saving what he'll have to pay back!!!!

Answer 9

Were in the jailhouse now,---I told you once or twice to pay your taxes and that cheatin's not nice.lol---part of an old song you may get TIME 2 learn it.

Answer 10

I think you are going to the big house