What would happen if you never filed taxes your whole life and the IRS always owed you money and you file them

Question

I mean this is not in my case I'm just curious. Let's say your 60 years old and you decide to start filing taxes for each year you worked since you were 18. I was told the IRS dosen't look past 3 years. Just immagine how much money that would be if they did. Would they allow 42 tax returns.

Answer 1

They would allow 42 tax returns if you owed them money. There is no time limit on filing a return where you owe them. But, yes, there is a 3 year limit if you are owed a refund. So that would mean that the only years you could get a refund for would be 2006, 2005, 2004. The state works the same way as well.

Answer 2

Your Q has a fundamentally flawed premise.

For 40 years of so you earned a living, didn't file taxes, but somehow had paid in enough that the IRS owed you a refund. In the real world, that wouldn't happen. You can't fly under the radar AND have either withholding or estimated payments.

Why, because at some point the IRS would be sending notices, attempting to contact you, or simply turn it over to the CID or the Treasury dept. When the Treasury dept contacts you about failure to file, it comes with a drop dead compliance date and the intent to issure an arrest warrant unless the returns are filed.

Answer 3

if he did not owe taxes for the years he did not file he will be able to get his refunds. more than likely at his age, he was taxed at a high enough rate that he would get a refund unless he made a large amount of money tell him to get on it. If he does owe - the problem will only get bigger and bigger because penalties and fees accrue at a horrific rate. he is probably just worried about nothing and just needs to take the plunge and do it. He should go to H&R Block - they can do it for him and they have seen this all before so there is no need to be embarrassed.

Answer 4

You could file all the years, and would actually be required to by law. But you'd only get your refunds three years back.

Answer 5

You would only get refunds for three years; beyond that time you would forfeit any refunds. The earlier returns would be accepted but no money would be received. The US Treasury thanks you and have a nice day.