How Many Years Does The IRS Go Back To Collect On Unfiled Tax Returns?

The IRS will require any taxpayer to go back and file your last six years of tax returns. Taxpayers are encouraged by the IRS to file all missing tax returns if possible, though.

All payments can be arranged via the IRS, with several programs like installment agreements and offer in compromise settlements, among others.

How To File Back Tax Returns

Here are five simple steps to follow when filing back tax returns:

Set Up Payment Agreement With IRS

If you cannot afford to pay back your tax returns immediately, you are allowed to set up payment agreements with the IRS. There are numerous payment options available, depending on your financial needs. If you don’t set up a plan and avoid paying the IRS altogether, the IRS can and likely will put their collections department on the case.

Only Go Back Six Years

Before starting this process, call the IRS or a trusted tax professional. Confirm with them that you only have to go back as far as the past six years for unfiled taxes.

Help With Transcripts

It is crucial to match the IRS’ exact records when preparing a return. Trace your income history by first requesting wage and income transcripts from the IRS. The IRS can question the accuracy of your return without this information being obtained.

Request Penalty Abatement

It is true that the IRS can be lenient in these situations. You can request that the IRS not charge you for failure to pay or face the burden of other financial penalties. You can file a first-abatement for the first year if you qualify. Another option would be to file a reasonable cause agreement for some late filing relief. Always be aware of any penalties you may be facing ahead of time.

IRS May Have Already Filed A Return For You

It is possible for the IRS to start a process referred to as a substitute for a return up to three years after the due date of return. Whenever you file a return to replace the substitute of return, the IRS will check the replacement return by comparing it to statements already on file. In some cases, this process can take as long as four months for the IRS to complete.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation. This family owned tax practice has been serving the public since all the way back in 1977!