Past Due Tax Returns
Will the IRS come after me for NOT filing my tax returns? How do I file my past due tax returns? How many years back can the IRS audit me?
Did you know if you do not file your tax return that the IRS will eventually create a "substitute tax return" which is essentially the information they have on file and seeking the maximum tax liability possible and then will then attempt to collect on that balance? Basically, the IRS's position is that you have had enough time to file your return and now we'll file one on your behalf without the benefit of applying tax deductions or credits. If you have lost or do not have your income tax documents, you can simply create an IRS account online and retrieve those tax items so can file.
Most often taxpayers are extremely afraid of the IRS because they have filed when in reality many would have received refunds if they had filed on time! Or perhaps had losses that could be carried over to future years. If you have not filed your tax returns and did not receive a notice, there is good reason to assume that there may have not even been any tax due to begin with or the IRS would have taken action.
So, while the IRS may not come after you to file your tax returns, they will certainly try to the get the most tax dollars along with penalties and interest from you. It is in your best interest to file your own past due tax return before the IRS does it.
Tax returns from the last three years from present can be e-filed. Otherwise, the tax returns will need to be sent via postal mail, it is highly advisable to obtain tracking information from the carrier, such as USPS, FedEx, or UPS, to ensure proof of delivery and monitor the package's status.
The bad news? There is no statute of limitations for late filed tax returns meaning they can still pursue penalties and interest on them. However, the IRS usually does not go past six years for non-filing enforcements. More commonly, the IRS pursues delinquent filers and enforcement actions for taxpayers within the past three years from the due date of the tax return.