If you haven't file your taxes for a number of years....how should one proceed to get current again?

Question

Side notes...Never owed any money back to IRS, always received a refund, Filing status has not changed, taxes are paid on a regular basis (state and fed) via deduction from paychecks, never received any notice from IRS thus far. Have kept all of W-2, check stubs, most large receipts, paperwork for the years not filed. Help! LOL

Side notes...Never owed any money back to IRS, always received a refund (when taxes were filed), Filing status has not changed, taxes are paid on a regular basis (state and fed) via deduction from paychecks, never received any notice from IRS thus far. Have kept all of W-2, check stubs, most large receipts, paperwork for the years not filed.....

Ok More clarification....NO not intentionally evading paying taxes, taxes are taken from every single paycheck. I am well aware that its illegal which is why I'm trying to get caught up..so saying just to file is I guess not what I was actually asking. The question is how? What is the best approach...I went to a Tax Pro and they wanted to charge $600 and I thought that was excessive...so i wanted to check around to see if that is standard price or not.

last addition... so I can file for 2006 even though I have prior years that have not been filed yet?

Answer 1

1. File all of the missing returns. Plain and simple. No additional steps are necessary.

If you have a refund coming, there is no penalty. But just because you had taxes withheld from your pay does NOT mean that enough was withheld or that you don't owe any back taxes! Without preparing a tax return, you'd have no way of knowing that for sure!

Any refunds from tax year 2003 or before are lost forever since you only have 3 years from the filing deadline to claim a refund.

You can get prior year forms and instructions from the IRS website and do it yourself. You'll have to fill them out and mail them in.

You can also purchase and download prior year tax software from all of the major software publishers' websites -- Tax Cut, Turbo Tax, etc. This is more expensive than DIY, but probably cheaper than a pro.

Without knowing the complexity of your returns and the number of missing ones, it's not possible to say if the $600 quote is high, low, or about right.

Answer 2

First, take all of your tax information to an accountant and complete the tax return forms for the years you didn't file. That will tell you where you stand. If you were actually due a refund every year, there will be no penalties (at least for Federal income tax), but you will only be able to claim refunds for the last 3 years. If that is the case, just file all the returns to start the clock on the statute of limitations for an audit. If you owe money for any of the years, your still owe with penalties and interest. Any refunds you could have claimed in the last 3 years can be applied to what your owe. If you go to the IRS before they find you, they won't file criminal charges for failure to file and you MAY be able to negotiate the penalties. State taxes generally follow similar rules, but without knowing the state in question, I can't check.

Answer 3

I say instead of coughing up $600 bucks... Do it the old fashioned way...

1) Go to the IRS' website and pull down the forms/tax guides for each year you did not file. You should be able to pull old 1040 forms for at least the last five years. If you need more and/or cannot obtain a form for a year - call the IRS to have one mailed.

2) If you always receive a refund - bear in mind that the IRS will absorb (keep) any refunds due to you longer than 3 years.

It is in your best interest to straighten this out. If you never owed anything - you probably will not face any taxes - but you never know what the future holds - just clear it up now.

Answer 4

As was mentioned before the first return that should be filed is the oldest. The 2006 tax year return can still be electronically filed. There is a statute of limitations for refunds (3 years) unless there is a reason you did not file (very few reasons qualify). You can download the proper forms using the IRS website, www.irs.gov or go to a tax pro.(go to an enrolled agent or CPA -- you don't need a tax attorney for this). Depending on where you go the tax pro may do the returns by hand or using software. As someone else mentioned the cost of $150 per return could be about right (most tax pro's charge by the form). The cost of getting your federal and state taxes caught up would be worth it in order to start the statute of limitations clock ticking, otherwise these tax years will not be closed.

Answer 5

I'm not a pro but I'll take a stab at this...

General rule is, regardless of whether you owe taxes, you are always required to file if your income is above a certain amount (this amount is very low, somewhere around a couple hundred dollars). You should take your paperwork to a tax professional and ask them to make up for the years you haven't filed. You may already be at risk for late filing with the IRS. The statute of limitations (which is the time the IRS has to levy some kind of fine/punishment against you) does not run out just because you haven't filed. I recommend you find a CPA (unless you're really good at the tax stuff yourself), consult with them about the details, and ask them the best way to catch up on the filing.

Hope that's helpful at least a little :-)

Answer 6

Just go ahead and file them, since you have all of the required forms like W-2's, etc. You can download forms and instructions at irs.gov, then click on "more forms and publications", then on "previous years". Be sure to use the forms and instructions for the year you're filing for.

Refunds for tax years 2003 and earlier are lost, you're too late to get them, but would be a good idea to file the returns anyway. For 2004 through 2006, you will still get your refund if you file.

Answer 7

You don't say how many returns need to be filed, if you have a tax preparer do them you can figure about $150 for each year (basic return) If you file yourself you just need to get the returns for the corresponding years. Check with the IRS. You might check with Turbo Tax or companies like that and see if you can get past years from them. The old returns will need to be mailed, you can't have them "e filed" so count on probably 6 weeks if you are going to get a refund. It sounds like you will based on what you described and the fact that the IRS hasn't contacted you. You might start at the IRS web site: www.IRS.gov. Oh, check with your friends they might have past years programs you could use (like I do).

Answer 8

You can go to IRS.GOV and dowload the paper forms to fill out every back year of taxes. Just download the sch 1040 and instruction booklet for each year. Do the math and enter the tax amount due and your refund. I would urge you to get cracking on this as once the three year time limit runs out you will forfeit your refunds. You might also check in your community and see if the IRS has a VITA person on tap to assist you. I have worked with VITA for 36 years and it is not unusual for people in your situation to come forward. VITA assistors usually have the forms available or can get them quickly. You can really do this yourself on paper if you just follow the instruction booklet.

Answer 9

File everything that hasn't been filed. It's better for you to bring up the mistake rather than them finding it on their own and giving you a nice little AUDIT. Especially being that you have all the information to file it. I would go to a tax specialist and see if there is a way to submit the old information without a big penalty. Tax evasion is not looked upon lightly.

Do it today! Don't wait.

Answer 10

If you have gotten a refund, then you have filed. The IRS will not return excess payments without a 1040.

However, if you still believe that you have not filed, use this page http://www.irs.gov/help/article/0,,id=96730,00.html to get in contact with the IRS and ask them what to do. Usually, if you approach them about it, they will waive fees and penalties. Just make sure that you let them know before they audit you and find out on their own.