How Far Back Can the IRS Go For Unfiled Taxes

know how far back they’ll go, isn’t it? What if they were to come knocking, asking you to justify all the years you avoided taxes?

Don’t be caught off-guard. Talk to your accountant, and do whatever it takes to get an answer to this question. You need to be prepared for the worst-case scenario.

We’re here to help. This guide has everything you need to know about back taxes and the IRS. Keep reading!

The Statute of Limitations for Unfiled Tax Returns

The Statute of Limitations for Unfiled Tax Returns outlines how far back can the IRS go for unfiled taxes. Generally, the IRS has three years to collect if taxes remain unpaid to the government.

Yet, if the taxpayer omits more than 25% of their income on their tax returns, the statute of limitations is extended up to 6 years. It is a 6-year period and allows the IRS to go back much further than three years when collecting unpaid tax debts.

How to Handle Tax Returns Filed Late

To handle an unfilled IRS tax return filed late is by filing them as soon as possible and paying any back taxes due with as little delay as possible to cut interest and penalties.

Furthermore, if you have income above the tax filing threshold, it is essential to file your taxes to avoid facing a possible penalty. The penalty for not filing on time is much higher than for filing late.

How the IRS Assesses Tax Due Dates

When it comes to an understanding of how the IRS assesses tax due dates, individuals must be aware that the IRS can go back far to collect taxes if they have yet to be filed. They can assess any taxes due before the current year that have not been filed as an unfilled tax return.

The IRS may also waive any interest or penalties imposed due to lack of filing for specific individuals, usually if a particular can show an exceptional circumstance. Knowing how far the IRS can go back for taxes due if you have unpaid and unfiled taxes is essential.

The Impact of Unfiled Returns on Your Tax Liability

When the IRS considers the impact of unfiled returns on your tax liability, they can look back as many years as needed. Generally, the IRS has up to three years to pursue delinquent taxpayers and show any extra tax due from unreported income.

In certain vigorous cases, such as fraud, in some rare cases, the IRS has up to 10 years to examine unfiled IRS tax returns and request extra money owed. Filing late returns and making payment arrangements is always better than ignoring the issue, as this could result in additional fees and penalties.

Learning How Far Back Can the IRS Go For Unfiled Taxes

In conclusion, how far back can the IRS go depends on the age of the taxes and the taxpayer’s location. It’s essential to stay current on paying taxes to avoid issues down the line.

Call an experienced tax professional for personalized advice to ensure the best outcome for filing past years’ taxes.

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