How Do I File Returns for Back Taxes?

The Internal Revenue Service (IRS) recommends filing past-due tax returns as soon as possible to limit penalties and interest on the amount you owe. To claim a refund for 2020, you will need to submit your 2020 tax return through the mail. Most tax software publishers keep their prior years’ software available for three years.

When the statutory period expires, we can no longer assess or collect additional tax, or allow you to claim a refund. The IRS can and will impose penalties and interest on tax liabilities that aren’t paid in full by the deadline for the tax return. If you’re missing past year tax documents, you can request copies from the IRS by filing Form 4506-T, or you can contact your employer or the institution that would have sent them to you. Catching up on past-due tax returns can seem overwhelming, but there are a few things in it for you. With Taxfyle, your firm can access licensed CPAs and EAs who can prepare and review tax returns for your clients. First, it’s a good idea to determine whether you would have owed money or received a refund for those years.

The government might owe you money.

Tax software has gained popularity in recent years due to its user-friendly interface and simplified filing process. These programs, such as TurboTax and H&R Block’s software, can be useful for individuals looking to file back taxes independently. how many years back can you file taxes Some notable tax service providers include H&R Block and TurboTax, which offer an array of services and support to help with filing back taxes. One reason many business owners get behind in their taxes is an inability to afford them.

Your unpaid balance will continue to accrue interest until it is paid in full. If you don’t file a return by the tax day of the year it’s due (typically in mid-April), you’ll be subject to a late-filing penalty. On top of that, any taxes you owe after the filing deadline passes will begin to amass fees in the form of penalties and interest. The IRS will usually inform you that you’re in delinquency by sending notices and bills to the address on file for you.

What If You Don’t File Voluntarily

Your other options are to send in IRS Form 870-Consent to Assessment and Collection form or a statement explaining why you aren’t required to file a return. In addition to being charged penalties and fees, the IRS may seize your assets, such as homes, cars, wages, bank accounts, and Social Security benefits. A statute of limitation is the time period established by law during when IRS can review, analyze, and resolve your tax-related issues.