Do NOT file all your unfiled Tax Returns
Have years of unfiled taxes? You may not be required to file all of the missing back taxes!
There are several laws in place that allow a fresh start path to tax filing compliance.
Having missing tax filings with the IRS feels like looking over shoulder. There can be many reasons why someon has not filed their taxes fro several years. There are a lot of people that have not filed a tax return in years! Some have gone 5 years, 10 years or more without filing their taxes.
This is a breakdown of when you do not have to file your tax returns!
Minimum Tax Filing Requirement
You must the minimum income threshold to file
When it comes to tax filings, everything's broken down by tax year. Every tax year has a filing requirement, the minimum income, the type of income, your age, your filing status, whether you have to file or not.
For example, in 2022, if you were under the age of 65, you filed as single and you made less than $12,550, you have no income tax filing requirement.
Each year’s minimum tax filing requirement can be found with the IRS Publication 17 or Pub 17 for short. Pub 17 is updated every year to reflect the tax law changes to filing your tax return.
Over 10 years?
The IRS “archives” your records after 10 years
If it has been longer than 10 years that you have not filed, you don't have your records, believe it or not, neither does the IRS. The IRS themselves what they do is they archive your records after 10 years. So even if you call them up and say, "Hey, IRS, give me my last wages and income from 15 years ago." The IRS will say, "You know what? Those records are completely archived. We do not have them." If you draft a return and it has been three years since the due date, and it shows a refund due, the IRS themselves, they probably have the same calculation. It might be the reason why they did not did the tax return on your behalf. So if it's been longer than three years and you're due a refund, there's no need to file that tax return either.
IRS Substitute For Return
THE IRS MAY HAVE FILED FOR YOU AN “SFR” TAX RETURN
In certain circumstances, the IRS has already done the tax return for you, known as a substitute for return or an SFR Tax Return.
If you yield the same results when you draft your own taxes, there's no need to replace that tax return. The reason why is that the IRS will take an incredible amount of time to process that tax return.
Instead you could just deal with IRS Balance by either entering into a repayment arrrangement or filing for a Tax Relief Setlement program such as the Offer In Compromise or Non Collectible Status.
You may need to in contact with the IRS collections department, adn submit timely tax relief program to avoid IRS collections.
The 6 year rule
IRS FRESH START 6 year look back rule
If you have IRS tax debt, the IRS has a quirky new little rule. It's called the six year compliance rule, which they only require the six most recent years of taxes to be filed.
Any year pas the 6 year mark the IRS may not be looking for it, so you do not have to file. The 6 year filing complinace rule is part of the Fresh Start Initiative, which gives you an opportunity to fix your tax problems without being overburdened.
You are given a complete fresh start without having go back 7 years or more with your tax filings.
Need help filing your back taxes? Let’s review which years you need to file! We offer a free case review
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