There several types of payment plans, depending on what you need. If you don’t set up a payment plan with the IRS and you avoid paying the IRS, the IRS will send their collections department after you. In some cases, bankruptcy can eliminate what you owe on returns. The first step of filing your taxes is gathering paperwork and documents. For every year that you did not file a tax return, you should gather your W-2s or 1099 forms. If you cannot find these documents, you can reach out to your employer to request a copy of this income information.
There are payment plan options as well as tax settlement options you should consider. The IRS requires taxpayers who use these programs to file all delinquent tax returns, and you may need assistance from a tax professional with this process. Sometimes, people don’t file tax returns because they can’t pay. Other times, life happens, and they can’t get everything together in time to file. Regardless of the reason, not filing a required return is serious business for the IRS.
What Happens if You Mail in Your Corporate Tax Return Late?
The prospect of facing penalties and interest, or just the sheer work of filing a past-due return, may tempt you to keep putting things off. If you have a substitute for return in your past or delinquent-return notice, how many years can you file back taxes you will need to file the return with specific IRS units for special processing. That might sound convenient, but it’s rarely beneficial. Whenever possible, you’re better off filing back taxes on your own .
Avoiding penalties and interest is perhaps the most compelling reason to file late tax returns sooner rather than later. When you’re struggling and short on cash, your tax bill may feel so overwhelming that $50 in interest and $500 in interest both feel like equally insurmountable obstacles. Eventually, however, the taxman will come calling and when he does, you’ll want to have yourself in the best position possible. Your tax bill isn’t going away, so act today to keep it as low as you possibly can. We promise you that there is light at the end of the tunnel, so keep that tunnel as short as you can.
How to File Unfiled Tax Returns
The IRS’s return also omits cost-saving tax credits your small business may be eligible for. If you think you owe back taxes, consider working with a tax professional who can help you gather past tax returns and file any that you may have missed. An installment agreement can give you up to 72 months to pay, but you must owe the IRS $50,000 or less to qualify. If you owe less than that amount, you can request an installment agreement online for a fee. Your request should most likely be automatically approved if you owe less than $10,000.
Do you lose your tax refund if you file late?
You won’t lose your refund for filing late as long as you file within three years of the original due date. If you don’t file within three years of the deadline, you can lose your tax refund.
This is because the rules and credits may change from year to year. If you cannot find one you need, contact the IRS or your state’s Department of Revenue.