Haven’t Filed Your Tax Returns in Years? Here’s What to Do
Not filing your tax return is a terrible idea on many, many levels. If you’ve forgotten, or just thought you didn’t need to file one, you could be in potentially serious trouble. Read below to find out what to do if you’ve gotten a bit behind on your returns.
If you’d like to speak with a Charles Krengel, P.A. representative today, call us at (800) 892-9631 or click here to contact us online.
Do I Need To File A Return?
As a rule, yes. There are some specific exceptions: For example, if you’ve made less than a set amount of money over the course of the year, with the threshold determined by your age, you don’t have to file. You should file, mind you; you may be able to take back some of the deductions out of your paycheck. And very few of us come under that bar in the first place. It won’t hurt to check if you meet certain standards, but that said, don’t count on not needing to file.
What If I’ve Missed A Return? Can I Let it Go?
You really shouldn’t. The IRS is constantly improving its bookkeeping and computerizing its records, allowing them to find and follow up on gaps. And needless to say, missing a few years of returns tends to draw their attention; you can very easily be audited for missing years. And there are other reasons to get that old return in as soon as you can.
Does Not Filing Really Cost Me Anything?
It’ll cost you quite a bit. First of all, here’s a quirk of tax law that probably won’t surprise you: If your tax return is more than three years overdue, even if it turns out you were owed a refund, under the law you won’t get it. So, if you’ve just been forgetting all these years, don’t expect a sudden windfall, just a sense of regret.
Also, if you haven’t filed by the due date, or missed extensions, you’ll also be subject to penalties for failing to file a form. And if you owe, and your taxes aren’t paid by the due date, they start collecting interest. Also, under the law, if you’re getting a refund or another check from the government, you can’t just apply that to previous tax years if it’s more than three years old. In other words, you’re going to pay if you owe, and if you didn’t file, the government doesn’t owe you.
Needless to say, there’s also the potential for more serious consequences; if you don’t file, and the IRS finds out, that may make you subject to criminal prosecution, one year for each year you haven’t filed.
So What Should I Do?
Simple: File your return. The odds of criminal prosecution are extremely low if you voluntarily file an old return and pay off what you owe the government, or discover that the government owed you. True, it’s a bitter pill to swallow, and older returns may mean a more difficult financial situation. But which would you rather be doing; signing checks, or hard time?
If you’d like to speak with a Charles Krengel, P.A. representative today, call us at (800) 892-9631 or click here to contact us online.
Contact Charles Krengel, P.A.
Before filing, contact a certified public accountant, like one from the team at Charles Krengel, P.A. We’ll help you get your returns in order and filed before the IRS comes calling. Whether it’s an old return or anxiety over taxes this April, call Charles Krengel, P.A. first.
