Prior Year Taxes
> Prior Year Taxes
Prior Year Taxes
Fallen behind on your taxes? File your past due return and set up an installment plan to limit interest charges and late payment penalties. If you are due a refund, you are risking losing your hard-earned money. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date.
If you fail to file, the IRS may file a substitute return (STR) which never favors you. This STR might not give you credit for deductions and exemptions you may be entitled to receive. The IRS will send you a Notice of Deficiency CP3219N (90-day letter) proposing a tax assessment. You will have 90 days to file your past due tax return or file a petition in Tax Court. If you do neither, the IRS will proceed their proposed assessment.
If the IRS files a substitute return, it is still in your best interest to file your own tax return to take advantage of any exemptions, credits and deductions you are entitled to receive. The IRS will generally adjust your account to reflect the correct figures.
Below are commonly asked questions by later filers:
Question: Why should you file your prior year returns and get back on track?
Filing your back taxes will help you reduce interest and penalties. The sooner you file your return, the less you will pay in overall penalties and interest. In cases where you cannot afford to pay the full amount, we can help you set up a monthly payment plan.
Question: What if I am due a refund for a tax return I did not file 3 or more years back?
You may be due a refund you never know until you prepare your taxes. If you are due a refund, you must claim it within 3 years of the return due date.
Question: What if I am self-employed and have not filed?
Filing your self-employed tax return ensures that your earnings for social security are reported and appropriately allocated to provide you with future benefits. If you do not file your taxes, then you will not receive credit toward social security retirement or disability benefits.
Question: I missed the deadline to file my tax returns, can I still file?
Yes, you can always file after the deadline and may be subject to penalties and interest depending on the circumstances.
Question: I have not filed my small business tax returns in over 5 years and I am worried that I will owe an amount that I cannot afford?