If you have not filed your taxes for three years, you may be disqualified for a duty refund. The IRS can file a tax refund on your behalf. The group would then go to great lengths to collect the overdue duty debt. While it may appear impossible to follow up with unfiled taxes, ignoring the conclusion might have disastrous consequences. Several duty group companies may assist you in catching up on surrendering your taxes, in addition to assisting you in reaching arrangements with the IRS if you owe elites on your liabilities.
Find more about: Late or Unfiled IRS Tax Returns
What if you haven’t filed your taxes in three years and can’t afford to pay?
Many individuals believe that if they don’t have the money to pay their taxes, there isn’t any point in submitting their tax returns. This is completely false. Even if you can’t afford to pay the tax, you need to file. This assists you in minimizing fines for failing to file. The penalty for paying taxes late is substantially smaller than the fine for failing to submit them. You can also consult a tax expert to establish a repayment plan or apply to additional IRS tax settlement possibilities once you’ve submitted your taxes.
Reasons to file taxes
- To apply for loans: Even though unfiled tax returns are acceptable for loan qualification, financiers frequently utilize them to determine your modified gross income. You can use your prior tax returns as evidence of income when you ask for loans.
- To avoid a failure-to-pay fine: Although it isn’t one of the IRS’s most severe penalties, the failure-to-pay fine is a portion of the monthly unpaid taxes payable. You’ll no longer be vulnerable to this penalty when you submit and pay taxes on time.
- To avoid a failure-to-file fine: The amount of the tax liability owing from your return is the amount of the failure-to-file penalty. The IRS charges this penalty to your account on the first day of your delay and continues to do so each month until you finally submit. A maximum of twenty-five percent of your balance may be taken by it. The sooner you submit, the more quickly this penalty is removed from your bank account by the IRS.
- To avail of tax refunds: You can still get tax refunds for the past two years if you haven’t filed in the last three years. According to the date, you might even be eligible to get a refund on your three-year-old return of taxes.
What if you haven’t paid your taxes in the last three years?
You have several alternatives if you have submitted tax returns but haven’t paid your taxes in three years, but you must move fast to avoid the IRS pursuing collection proceedings against you. A tax professional may discuss the tax liabilities with you and assist you in determining the best course of action for your particular circumstances when you get in touch with them.
