Unfiled Tax Returns Statute of Limitations

Posted on 06. Apr, 2012 by in unfiled returns, unfiled tax returns, unfiled taxes

Unfiled Tax Returns Statute of Limitations

Unfiled Tax Returns Statute of Limitations

People always ask the question: What is the statute of limitations for unfiled taxes?

This is an easy one…there is none.  When you don’t file then the statute clock has not started.  So in theory the IRS can come after you for tax returns for an unlimited number of years.  What normally happens is that if you have outstanding W2s and 1099s then after 3 or 4 years the IRS will often file a Substitute for Return (SFR).  The SFR won’t give you as many deductions as you would normally have.  The IRS will then start to pursue collection.

Many people are self employed and they think that if they don’t file tax returns for several years then the statute of limitations will just expire and then they don’t have to file at all.  This is simply not the case.  You need to get your returns filed ASAP.  Only at that point will the statute of limitations clock start.  It is normally three years for federal taxes (many states are four years), but the IRS can extend the statute for various reasons such as fraud or negligence.

So if you have unfiled taxes, you must file every tax return that is overdue.  However, a taxpayer may not be required to file in years that he/she did not make sufficient income to warrant a tax return.  Another concern is that the taxpayer should be in compliance with all current tax payments.  In cases of individuals who are self employed or receive revenue from dividends or royalties, compliance includes estimated tax payments, which must be made four times per year, after each quarter.  It is advisable to know whether you are deemed compliant by the IRS, and if not, how you can take steps to obtain compliance status.

So since there is no statute of limitations for unfiled tax returns, you need to get your returns filed ASAP.  Contact us today for help.

As a CPA firm with over 25 years of combined experience, we understand back tax issues. Our CPAs have a proven nationwide track record. No more dealing with the IRS. We can put an end to your back tax return issues.

If you need help, please contact us immediately at 1-888-570-1033.

Unfiled Tax Returns Statute of Limitations

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