If you have unfiled taxes from previous years, you do not need to panic as you may still be able to file them. However, it is important to understand that there may be consequences for not filing your taxes after a certain period of time. For example, the Internal Revenue Service may choose to file a return for you. This may seem like a reasonable outcome until you learn that the IRS will likely not utilize all the deductions you could have received if you filed the tax return yourself. If you require assistance filing your back taxes, you should consult with an experienced Folsom unfiled taxes attorney.
The NewPoint Law Group acknowledges the concern with having unfiled taxes. Not only can you be subject to a penalty from the IRS under certain circumstances, but you may also miss out on claiming a refund. To schedule a confidential consultation to discuss your case, call the NewPoint Law Group at 1-800 358-0305.
Reasons to File Your Back Taxes
If you still need to file your back taxes with the IRS, you should not continue to delay the process. There are various reasons why a taxpayer may not file a return. Some taxpayers may simply forget to file while others may be avoiding their tax liabilities. Whatever the reason is, you should know that refusing to handle your back taxes does not do you any favors. The following is a list of reasons to file your back taxes.
Claim Your Refund
If you are owed a refund from withholding or estimated taxes, you can lose this refund by not filing your back taxes. Specifically, you must file a tax return within three years of its due date to avoid losing the refund you are entitled to. Additionally, if you can claim a tax credit on your unfiled return, this may also be lost if you miss the filing deadline.
When a taxpayer has at least one unfiled return, they risk having the IRS hold a future refund until the situation is rectified or the taxpayer provides a legitimate reason for failing to file.
Preserve Your Social Security Benefits
The preservation of Social Security benefits is more likely to be an issue for self-employed workers. People that receive their wages on an hourly or salary based system will usually have Social Security taxes automatically deducted from their paycheck. Alternatively, self-employed workers must manually estimate their Social Security tax liability and provide the IRS with quarterly payments based on their income.
If a self-employed worker does not file their tax return, their income will not be reported to the IRS and applied to their retirement and disability benefits.
Avoid Financial Issues
Multiple creditors may request copies of your tax returns when you apply for a loan. This means that unfiled tax returns can affect your ability to secure a mortgage, open a business, or even apply for financial aid to attend college.
It is also important to note that failure to file a tax return can result in the IRS charging a taxpayer a late payment fee or interest on their taxes. To learn more about how to file your back taxes, you should continue reading and consider speaking with an experienced California unfiled taxes attorney.
Preparing to File Your Old Income Tax Returns
When preparing to file your old income tax returns, the first question you should ask yourself is when the last time was you filed a return. If you cannot find your tax documents for the years you did not file; you can contact the IRS to request copies of those documents free of charge. You can also speak with your employer to track down those documents.
Once you have your tax forms on hand, you should consider hiring an experienced lawyer to help you with filing. Tax laws are constantly shifting from year to year and discovering which laws applied in a certain tax year can be extremely tedious.
Additionally, if the IRS sent you a notice of deficiency stating that they are preparing to file a substitute return for you, an experienced tax attorney can help you avoid this outcome. It is always better to file a return yourself as a substitute return may trigger a tax bill. You should also know that unfiled returns must be printed and mailed directly to the IRS. If you believe you are close to the filing deadline, you should factor this into your calculations.
Work with Our Folsom Back Taxes Lawyers Today
If you need assistance handling your unfiled tax returns, you should contact an experienced Folsom back taxes lawyer today. The legal team at the NewPoint Law Group possess decades of combined legal experience managing tax returns for clients in Folsom and across California, and we would be proud to use this experience to represent you. You do not have to handle your unfiled tax returns alone, contact the NewPoint Law Group at 1-800 358-0305 for your confidential consultation.