Did you know you are considered a non-filer even if you have one unfiled return and it is considered a felony?

Check out the information below to help you file your taxes and get current with the IRS.

1. Gather Records

Gather up as many records as you can. Take inventory of your w-2’s, 1099’s, and interests forms you may have. This is a good starting point to determine what records you do or do not have.

2. How Far Back?

In many cases when you have unfiled tax returns you may only be required to file for the last 6 years. However you may consider going back further because the IRS has 10 years to collect any balances from when the last return was filed.

3. Fines and Jail time

Having unfiled tax returns is considered a criminal act and punishable up to $25,000 and 1 year in jail for each year unfiled.

4. Married filing Separate

If you are married and only one spouse owes back taxes you may consider filing separate returns.  This keeps the liability only on one spouse.

5. Refunds

You can only get refunds going back 3 years from the original due date of the tax return.  The IRS has 10 years to collect from when the reurn is filed.

6. It’s OK to file late sometimes

There are a few special circumstances when it is ok to file late.

• Living outside the United States (Puerto Rico) or having your main workplace outside the                  United States.
• Serving in the military and being stationed outside of the United States.

If either of these circumstances apply you automatically qualify for a 2 month extension and can apply for a 4 month extension.

7. State and City Returns

Don’t forget to file you State and City tax returns.  Many states and cities have their own set of rules regarding unfiled tax returns.  Many of the penalties are harsher than the IRS.

8. Social Security

Having unfiled tax returns can result in a loss of benefits with Social Security even if you have paid in.

9. Service Filed Returns

The IRS has the right to file a tax return for you.  These are call service filed returns (SFR) and usually have no deductions causing you to have the highest tax possible.

10. Frivolous Tax Returns

Make sure you do not file a frivolous tax return.  A frivolous return is one that omits certain information necessary to determine the taxpayers libility.  An example may be a return with a missing Social Security number.  The penality is up to $500 per return filed.

It is not uncommon for taxpayers to get behind on filing their returns and have one year snowball into many. Whatever a person’s reason for getting behind it is in their best interest to get caught up.  Many times a person will need a tax professional help them sort everything out and move forward.

If you need help with your unfiled returns please give a call to (877) 829-2455 or email for a initial consultation to determine the best course of action.