Sometimes time escapes you and suddenly you have several years’ worth of taxes to file. While it certainly feels overwhelming, there are some action plans you can take to remedy the situation.
If you have three years from the original due date to file and get any refund the IRS owes you, but you’ll still need to file even if it’s beyond three years. If you owe taxes, you’ll owe them money, plus penalties and interest, no matter how many years have passed.
Even if you don’t have the money to pay what you owe, you need to file your tax returns promptly so you can avoid the penalty for late filing. If the deadline has already passed, then the sooner you file the better. If you don’t, the late filing fee penalty continues to get bigger as you continue to ignore filing.
You can set up a payment plan for any back taxes owed. You can go online to www.irs.gov or fill out form 9465.
If you fail to file, the IRS may file a substitute return for you, though this return might not give you credit for deductions and exemptions you are entitled to receive. We will send you a Notice of Deficiency CP3219N (or 90-day letter) proposing a tax assessment. You will need to file your past-due tax return within those 90 days or file a petition in Tax Court. If you do neither, we will proceed with our proposed assessment. If you have received notice CP3219N you can not request an extension to file. If the IRS files a substitute return, it is still in your best interest to file your own tax return to take advantage of any exemptions, credits and deductions you are entitled to receive. The IRS will generally adjust your account to reflect the correct figures.
If you need the documents for filing your taxes because you no longer have your W2’s then you need a wage and income transcript to help prepare a past due return, complete Form 4506-T, Request for Transcript of Tax Return and check the box on line #8. You can also contact your employer or source of income to get a copy.
Our office can assist with any prior-year tax returns that need to be filed, any amended returns, setting up payment plans and/or obtaining the wage and income tax transcripts. If you’re ready to move forward with this process, call our office at 814-333-2488 or email us at firstname.lastname@example.org.