Common Concerns About Late Tax Return
Clients often call and admit that they haven’t filed a late tax return for years, such as 2007, 1997, or even 1994. They usually feel embarrassed and believe they are the only ones with such a significant issue. Many worry that catching up on their late tax returns or the filing process will be too difficult.
Dealing with Missing Records
“I don’t have any of my W2s!” “I ran my own business and lost the records!” “The banks holding my records don’t exist anymore!” “The vendors I worked with are gone!” “My spouse handled the records, but we never filed!” These scenarios are common and solvable.
Resolving Missing Records
To reconcile such tax issues, your CPA can complete and fax Form 4506-T. Within a few weeks, you will receive a transcript with all the information your employer should have reported, including 1099-DIV, 1099-INT, 1099-MISC, W2, etc. This process ensures you have the necessary documents to accurately file your past-due taxt return.
Understanding IRS Records
The IRS has these records because each reporting institution must file W2s with both the employee and the IRS. The IRS uses these filings to verify if your reported income matches what institutions have reported. By cross-referencing these records, the IRS ensures that your late tax return reflects accurate income information.
Filing Your Late Tax Return
Once you obtain these records, filing your returns becomes a straightforward process. File the return even if you cannot pay the owed amount. It’s important to address your late tax returns promptly to avoid further complications or penalties.
How Far Back Should You Go?
Typically, you should go back 6 years. Some government jobs and special employment situations may require more, but generally, the furthest you need to file is 6 years. Filing beyond this period is usually not required unless specific circumstances dictate otherwise.
Need assistance with your late tax return or have questions? Contact us today via email, phone, or by filling out the contact form. We’re here to help!
