Past Due Tax Returns

Not filing your taxes can happen for numerous reasons but the most important first step is to get into compliance and file your back returns. Our Santa Clarita and Downtown Los Angeles (DTLA) tax firm will work with the IRS on your behalf to resolve past due tax returns.  The longer you wait to file your tax returns, there will be greater penalties and interest.  Additionally, it can become a hassle to secure a mortgage, loan, or financing if there are delinquent tax returns.

In almost every case we see, you do not need to file every year. The IRS generally wants to see the last six years of returns on file, but each situation is unique. If the IRS filed for you, you would want to replace the Substitute for Returns (SFR) with returns of your own to reduce the balance they assessed. If you are getting refunds and will not owe taxes, you can focus on the last four years only (as the statute of limitations prevents refunds beyond 3-4 years). LNK Tax Group can guide you on which past due tax return(s) need to be filed.

Taxpayers who do not file a required tax return can face delinquent return enforcement actions from the IRS and state taxing agencies.  These actions can include requests to file and other more serious enforcement activity such as filing a substitute for return (SFR) and criminal investigations.  Taxpayers can face steep penalties for late filing, including a 5% per month late filing penalty (up to 25%).  We will file a power of attorney, obtain your wage/income transcripts and work with you to recreate your past due tax returns since we know how difficult it can be to remember something from so long ago.