What to do with Unfiled Tax Returns:

There are many reasons taxpayers do not file tax returns. Health, missing documents, busy schedules, and other life changing events are just the tip of the iceberg. Those who have not filed a tax return, whether it be one year or multiple years, can be overwhelmed and may not know where to turn. Fortunately, there are tax professionals who specialize in tax resolution. They can help file delinquent tax returns and, if needed, create a personalized plan to resolve tax debt.

The IRS maintains files of all tax documents such as W-2s, 1099s, 1098s, etc. By filing a Power of Attorney, a tax professional can access this database on behalf of the taxpayer. With that information, they can prepare and file any outstanding tax returns. If additional information is needed to reduce your tax balance (such as charitable contributions, business expenses, etc), you can work with your tax professionals to find this information and create a more favorable tax return.

Delinquent returns should be filed as soon as possible to avoid further accumulation of interest and penalties. Additionally, the IRS Status of Limitations limits the amount of time you have to claim a refund to three years from the due date. With that said, it is important to prioritize any returns not filed within the past 3 years so you limit the risk of sacrificing your tax refund.

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Written by: Dawn Patton