Not filing your taxes can occur for various reasons, but the crucial first step is to come into compliance by filing your overdue returns. Our tax firm in Santa Clarita and Downtown Los Angeles (DTLA) is here to assist you in working with the IRS to resolve your past-due tax returns.
Delaying the filing of your tax returns can lead to increased penalties and interest. Additionally, having outstanding tax returns can complicate securing a mortgage, loan, or other forms of financing.
In most cases, you don’t need to file every year. The IRS typically requires returns for the last six years, though each case is unique. If the IRS has filed returns on your behalf, it’s beneficial to replace these Substitute for Returns (SFR) with your own filings to potentially reduce the assessed balance.
If you are expecting refunds and will not owe taxes, you may only need to focus on the last four years, as the statute of limitations limits refunds beyond this period. LNK Tax Group can help determine which overdue returns need to be filed.
Failure to file required tax returns can lead to enforcement actions by the IRS and state tax agencies, including requests for filings, substitutes for returns (SFR), and even criminal investigations.
Penalties for late filing can be steep, including a 5% monthly penalty up to 25%. We will file a power of attorney, obtain your wage and income transcripts, and work with you to reconstruct your overdue returns, understanding that recalling details from the past can be challenging.