No, filing delinquent tax returns is not a legal matter and shouldn’t require hiring an Arizona IRS Tax Attorney. However, you should be aware of some of the negative consequences of filing late returns:
- After three years past the due date, if you have a refund, it is lost and cannot be applied towards any balances due.
- The IRS has a 10 year statute of limitations in which to collect on assessed taxes. However, the statute does not start until your returns have been filed and assessed.
- If you refuse to file back tax returns there can be legal consequences—but even an AZ IRS Tax Attorney is not going to be able to get the IRS to agree to not filing a back tax return.
- If you have not filed for a few years the IRS will file a Substitute for Return (SFR) which is prepared in the most negative way possible. If this has already occurred, it can be corrected by filing a correct return at the Service Center that prepared the SFR.
- The longer you wait to file a delinquent return the more penalties and interest will be added to the tax due. If you have a refund, there will be no penalties or interest added.
- You cannot qualify for any IRS settlement programs until you are in compliance with filing all of your back tax returns.
Scott Allen E.A. can be reached for a free consultation to discuss filing your back tax returns at 480-926-9300. Scott has filed many SFR protests that have reduced the tax liability as well as the interest and penalties.