Life happens, and sometimes taxes get pushed to the back burner. Whether it’s been a year or a decade since you last filed, you’re not alone. Many people find themselves in this situation, and the good news is that it’s never too late to take action. At A Plus Bookkeeping and Tax Services, we specialize in helping individuals and businesses get back on track with past-due taxes.
What Happens If You Don’t File Your Taxes?
The IRS requires most people to file taxes every year. If you don’t file, here’s what could happen:
- Failure-to-File Penalties: The IRS imposes a penalty of 5% of your unpaid taxes per month, up to a maximum of 25%.
- Failure-to-Pay Penalties: If you owe taxes and don’t pay on time, you’ll face an additional 0.5% per month in penalties, plus interest on the unpaid balance.
- Substitute for Return (SFR): If you don’t file, the IRS may file a return for you based on limited information—usually in their favor, meaning you could owe more than you actually do.
- Tax Liens and Levies: Unpaid taxes can result in the IRS placing a lien on your property or seizing assets to settle the debt.
- Loss of Refunds: If you’re owed a refund but haven’t filed, you only have three years to claim it. After that, the refund is forfeited.
How Far Back Can You File?
The IRS generally requires you to file taxes for the last six years to get caught up, but in some cases, they may request older returns. Filing these returns can stop collection actions, like liens or levies, and show good faith in resolving your tax situation.
What If You Can’t Afford to Pay?
If you owe taxes but can’t pay in full, there are several options:
- Payment Plans: Set up a monthly payment plan with the IRS.
- Offer in Compromise: Settle your tax debt for less than the full amount if you qualify.
- Currently Not Collectible Status: Pause collection efforts if you can prove financial hardship.
At A Plus Bookkeeping and Tax Services, we’ll help you explore the best option for your financial situation.
How We Can Help You Catch Up on Taxes
- Evaluate Your Situation
- We’ll start with a detailed consultation to understand how many years you’ve missed and what the IRS may already know about your situation.
- Retrieve IRS Transcripts
- If you’ve lost track of past income or W-2s/1099s, we can request your IRS transcripts to gather the necessary information.
- Prepare and File Returns
- We’ll prepare accurate returns for each missing year, ensuring all deductions and credits are applied to minimize what you owe.
- Negotiate with the IRS
- If you owe back taxes, we’ll negotiate on your behalf to set up payment plans, reduce penalties, or even settle for less through an Offer in Compromise.
- Provide Ongoing Support
- Once you’re caught up, we’ll help you stay current with tax filings and payments so you never fall behind again.
Why Work with A Plus Bookkeeping and Tax Services?
- Expertise: We have extensive experience dealing with back taxes and IRS negotiations.
- Non-Judgmental Approach: We understand that life gets busy, and we’re here to help—not judge.
- Minimized Penalties: Our team knows how to reduce penalties and interest where possible.
- Peace of Mind: Getting caught up on taxes can feel overwhelming, but we’ll handle the hard work so you can breathe easier.
Don’t Wait to Take Action
The longer you wait, the more penalties and interest can pile up. Getting started now is the first step toward financial peace of mind. Whether you’re missing one year or many, A Plus Bookkeeping and Tax Services is here to help you get back on track.
Contact us today for a free consultation, and let’s tackle those past-due taxes together!