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If you’re using tax software, make sure to select the correct tax year when starting a new return. This will ensure that you’re using the right tax forms and calculations for that specific year. The software will guide you through the process, asking for the necessary information to complete your return. Once you’ve filled in all the details, you can double-check everything for accuracy before submitting your return electronically. You can find the nearest VITA site near you on United Way Bay Area’s website.

Even though the IRS can request your tax filings for the past six years, they can’t collect taxes owed after ten years due to a statute of limitations. However, note that they may aggressively attempt to pursue payment as this 10-year deadline draws nearer. When you do get behind on your taxes, you can minimize the damage by taking steps to file your back tax returns as soon as possible. The sooner you file your late tax returns, the sooner you can put this stressful situation behind you—and put an end to the accrual of fees and penalties. Remember that the penalties, interest, and actions taken by the IRS to recover what you owe will only increase as time passes.

Avoid interest and penalties

There is also no statute of limitations for the IRS to collect back taxes if your return is part of a case that involves civil or criminal fraud. Look for someone with significant experience in preparing back taxes if you decide to use the services of a professional. This would be the way to go if you need advice on handling incomplete tax documentation, or an advocate who will negotiate with the IRS on your behalf. An extension, if approved, provides filers a six-month grace period to file, though it does not provide an extension to pay. It takes approximately 6 weeks for us to process an accurately completed past due tax return. If you need wage and income information to help prepare a past due return, complete Form 4506-T, Request for Transcript of Tax Return, and check the box on line 8.

• Fortunately, if the IRS filed an SFR on your behalf, you don’t have to accept its assessment.
• Catching up on past-due tax returns can seem overwhelming, but there are a few things in it for you.
• 11 Financial is a registered investment adviser located in Lufkin, Texas.
• By staying informed and having the necessary information and documents on hand, taxpayers can file their past-due returns confidently and smoothly.
• Many states have far more stringent repayment requirements than those afforded by the IRS, and many are likely to require a more aggressive repayment plan than the IRS might offer on the federal balance of tax owing.
• If paying your bill would be a serious financial hardship, you might consider an offer in compromise, which is essentially a settlement with the IRS for less than your total bill.

Sometimes we may believe that if something’s free, it might be lower quality. Olle from the Economic Security Project says she’s noticed that this way of thinking often motivates how and where some people file their taxes — and can push them toward paying a professional tax filer. Or if you’re looking for free, in-person tax help, there are dozens of nonprofit organizations across the Bay Area offering free tax filing services. Find the closest free or low-cost tax resources with the United Way Bay Area’s map.

Reviewed by Subject Matter Experts

If you prefer to mail a paper version of the extension, called form 4868, make sure it’s postmarked no later than April 15. That can help reduce the penalties and interest.” Larry Pon, a certified public accountant and tax professor at the College of San Mateo, told USA TODAY Blueprint. Based on tax information currently available, the IRS estimated how many years back can you file taxes how many people in each state may be entitled to a tax refund. The actual refund amount will vary based on a household’s tax situation. For example, if you’re filing your 2022 tax return, you’ll need your W-2, 1099s and any other pertinent documents from 2022. Our tax-prep checklist covers additional information you may need to access.

Ignoring the IRS’s communications is the worst thing you can do, and it won’t stop them from pursuing your tax debt. While agents won’t show up on your doorstep, they will penalize you by adding costly fines to your tax debt. Here is the sequence of events you can expect if the IRS doesn’t receive your payment. No one intends to be years behind on taxes, but it can happen to any small business owner. Even some of the most experienced entrepreneurs have found themselves in this situation at one time or another.