Filing taxes late is easier with the help of a tax professional. Our tax help services can assist you in understanding your tax liability, negotiating payment plans, and finding relief options. We can also help prepare and file any past due returns and represent you before the IRS.

Filing taxes late can be a daunting and overwhelming task, but it is important to take action as soon as possible to avoid potential penalties and fines.

If you have failed to file taxes for several years, you may be able to rectify the situation by working with a tax professional. We at Palm Beach Tax Relief, can provide you with tax help and determine which past returns need to be filed, gather the necessary information, and file the returns on your behalf to get you back in compliance with the tax laws.

What is the penalty for filing taxes late?

Not filing taxes can result in severe consequences such as fines and even prison time. The government has a window of six years in which they can file criminal charges against you for tax evasion. However, if you voluntarily file your missing tax returns you are less likely to face charges.

Circumstances such as illnesses or family emergencies can make it easy to fall behind on paying taxes. However, avoiding the problem by not filing taxes for several years can lead to harsher penalties and legal repercussions.

Will there be a time limit for tax collections?

The belief that old, unfiled tax returns are no longer subject to collection by state tax agencies or the IRS is incorrect. In fact, taxes owed can still be collected even after a decade has passed. 

The IRS has no time limit for collecting taxes, charging penalties, or accruing interest for unfiled taxes. However, there is a 10-year time limit for collecting money owed after a tax return is filed. State agencies may have different rules and longer periods of time in which to collect taxes.

Paperwork and documents you need to gather

To begin the process of filing taxes with tax help, you will need to gather various paperwork and documents. This includes W-2s or 1099 forms for each year that a tax return was not filed. If you do not have these forms it is possible to request copies from your employer. 

Keep any receipts that might be needed to claim certain credits or deductions. You can also request tax documents from the IRS by filing Form 4506-T, also known as the Request for Transcript of Tax Return, which will provide transcripts of previous W-2s, Forms 1099 and 1098.

What to do if you can’t pay the taxes you owe in full

If you are unable to pay the entire amount of taxes owed you may be able to enter into a payment plan with the IRS, also known as an installment agreement. With this plan, you agree to pay the taxes owed over a set period of time. If you believe you will be able to pay the full amount owed within the time frame, it might be worth considering this option.

Another option is an Offer in Compromise, which could be suitable if you owe a significant amount of taxes and have limited income or assets. With an Offer in Compromise, you would pay less than the amount owed to settle the debt. Additionally, you may be able to get your tax debt declared as non-collectible if the amount you owe is particularly burdensome and it is impossible for you to pay it.

At Palm Beach Tax Relief, we have helped many taxpayers negotiate successful installment agreements and helped them obtain affordable repayment plans to stop collection actions and reduce the amount of back taxes owed. We can help you find a tax solution that works for your unique situation with tax help.

File your taxes as soon as possible

It’s important to file your tax return as soon as possible to avoid missing key deadlines. If you delay taking action and need tax help, the IRS may prepare a substitute return for you if you haven’t filed one in a few years. This substitute return is used to calculate your tax and begin collection activities, but it doesn’t include any credits or deductions, which may result in a higher tax amount than what you actually owe.

Notices you can expect from the IRS

When you haven’t filed a tax return in a few years, the IRS will retrieve your tax information from those years and use them to calculate your tax amount. Then, they will send you an assessment letter that shows the amount you owe. In this situation, you have the option to file an original tax return or contest the assessment in Tax Court within 90 days of receiving the letter of deficiency. Seeking tax help from a professional can help guide you through this process.

If you don’t respond to the letter in a timely manner you will receive another letter, a Statutory Notice of Deficiency, which notifies you that the IRS is ready to collect unpaid taxes, interest and penalties. The letter will also inform you of your right to dispute the assessment in Tax Court and you can either file an original tax return or agree to the IRS’ assessment and collection through a Consent to Assessment and Collection.

Documents you need to compile when you are filing taxes late

If you have fallen behind on filing your taxes, it’s important to gather the following documents:

  • Any letters or notices from the IRS
  • Previous tax returns
  • Business expenses and income information if self-employed
  • Tax forms such as W-2s, 1099s
  • Mortgage interest statements

If some of the required documents are missing, you can request them from the IRS. Information on expenses can also be obtained from receipts and bank statements.

Refund statute of limitations

The statute of limitations for claiming a refund is three years from the original filing deadline. If you file for a refund after this three-year window, you will no longer be eligible to receive it. In addition, the IRS is also unable to apply the refund to any outstanding balance or apply it towards future estimated payments. If you received a letter from the IRS threatening enforcement actions, it’s important to contact a professional for tax help as soon as possible.

Contact Palm Beach Tax Relief today

Filing taxes late? We’ve got your back with our tax help services. Contact Palm Beach Tax Relief for assistance in filing your tax return as soon as possible. We can communicate with the IRS on your behalf to obtain transcripts and other necessary information, providing you with tax help you need.

Working with us can also give you the opportunity to request a pause on enforced tax collection actions. We will follow up with the IRS to ensure the return is accepted.