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Ozzie Gomez
- November 23, 2023
If you are seeking help with unfiled back taxes, you have come to the right place. There are many taxpayers who worry they don’t have options when it comes to tax liability. But, this is not the case.
It’s true that the IRS has not forgotten about you. However, this doesn’t mean they are going to show up on your doorstep with a hefty tax bill. When it comes to your tax liability, the best thing to do is take charge of the situation. And this means turning to the professionals.
File Your Tax Return
It’s true we all want to receive a tax refunds at the end of the tax year. Unfortunately, this isn’t always the case. But avoiding the issue will not address it.
There are times when we have unpaid taxes that we are required to make up. In an ideal world, you would do this right away and keep your slate with the IRS clean.
However, there are certainly circumstances that lead to tax issues. Whether you don’t have the money to pay, or you failed to file your return. This is certainly more common with individuals who are self-employed. These professionals keep track of wage and income transcripts, and sometimes things get lost in the shuffle.
However, making a mistake here and there is different than not filing altogether. And when you don‘t file, the result is back taxes. You have to file a tax return every year, as this is how to maintain good standing with the IRS.
And a word of note, the IRS doesn’t accept any excuse for not filing altogether. There is leniency when it comes to minor discrepencies. But not filing at all can come with repercussions.
How Far Back Does the IRS Look for Unfiled Taxes
The IRS typicallly has ten years to collect taxes due. This timeline includes failure to pay penalties that were affiliated with the tax liability. And yes, a lot of interest and fees can accumulate in that amount of time.
However, if you’re asking how far can the IRS go back on unfiled taxes, then it’s time to rethink. Basically, it’s time to start planning. Any amount of time to owe unpaid back taxes is too long. And the longer they go unpaid, the worse you are making your situation.
Instead of wondering how far back can the IRS go for unfiled taxes, ask the more important question. What are the options for addrssing your tax burden. After all, that is the question that you need answered. And that answer is what is going to get your problem sorted out.
Options for Unfiled Back Taxes
First and foremost, a tax professional can help with unfiled back taxes. There are many avenues regarding options, but a tax professional can make sense of them. For instance, how do you start the process?
To get started on your unfiled back taxes, you should simply file them with your current tax filing. This is certainly a more involved process since you will be filing for more than a single year. But again, a tax professional can assist with this process.
A point of note here: You should file even if you aren’t in a position to pay in full. There are some taxpayers who are nervous about this prospect. However, this step comes before establishing a courser of action. In some instances, you might be able to get extensions or set up a payment agreement.
In other instances, you might qualify for an Offer in Compromise. This is an option that enables the taxpayer and the IRS to agree on a lower tax liability. Again, a tax attorney can play a significant role in helping you navigate this process.
Remember, there is no avoiding your tax bill altogether. But negotiations with the IRS can help you lower your tax bill. And it is best to have a tax attorney handle these negotiations. They have the knowledge and experience to make sure the situation i handled appropriately.
What if I Don’t Pay?
Again, the question ius worth discussing, but not actually asking. If you don’t pay the IRS your unpaid taxes, you will be hit with interest and penalty fees. These are only going to make your tax liability worse.
If the amount remains unpaid, the IRS will initiate a collections process. This can include a levy on your bank account, for example. By definition, a levy is a seizure of your financial assets to satisfy a tax liability. And there is no question this is not a situation you want to be in.
The IRS can also file a notice for a federal tax lien against you. Similar to a levy, this is a legal claim against your assets. And if the problem gets bad enough, criminal prosecution is an ultimate step the IRS can take.
To be clear, criminal prosecution is a last resort and typically reserved for major offenders. That being said, the collections process is not a process you want to be involved in at all. Especially when there are preventative steps you can take to avoid it.
Even if you have unpaid back taxes, you have options. That is the most important thing to remember. It is also a reason to turn to the tax professionals.
Turn to The Tax Professionals
We can help you with your tax problem in a way that suits your needs. It doesn’t matter why you are where you are. What matters is moving the needle in the right direction going forward. Our tax professionals can see to it that that happens.
We know that every tax problem is not the same. And that is why we can put together a solution that works for you. We can help you see your options, negotiate with the IRS on your behalf, and put you back in control.
Reach out to the professionals at Innovative Tax Relief today and take control of your unpaid back taxes.
