back taxes?

Question

how far back would or could go the irs go back,also if it,s impossible for the person to pay the full amount due to intrest and late penalties,if it causes the person a hardship and in all reality unable to pay.

Answer 1

Technically, IRS could determine tax all the way back to 1913 but realistically, if a person has failed to file tax returns for a number of years, the general IRS policy is that unless there is fraud (something quite different from negligence) it will solicit returns for the past six years.

If there is a balance due and the person is unable to pay without causing hardship--this means inability to pay basic living expenses using IRS national and local expense standards--the account can be classified as currently not collectible. If there is potential for collection of part of the liability or the taxpayer can make installment payments, IRS will demand that.

I am an enrolled agent licensed by the US Treasury Department to represent taxpayers and specialize in this kind of problem. If you want additional information outside this forum, you can email me through my profile.

Answer 2

File your returns now, I am surprised you haven't received an ASFR notice, stating if you don't file within 30 days IRS will file returns for you at a higher rate, no dependents, no deductions (other than standard deductions). If you don't have all your wage information (W2) contact IRS at 1-800-829-1040 to request copies. Once you call IRS they will give you 30 days to get return filed. If you owe and can't pay the full amount IRS will work with you. An installment agreement will be offered, the payment required will have to do with the amount you owe. Usually IRS gives you 60 months to pay off your balance. There is a USER FEE of $105.00 to establish an installment agreement or $52.00 for a direct debit installment agreement. IF you can't pay the amount IRS is proposing then complete Form 433-F Collection Information Statement and IRS will verify all your bills and let you know how much they will accept as a monthly payment. Any refunds due to you will be offset to the balance due.