Information about Non-Filing of Tax Returns

If you haven't been filing your tax returns for quite some time, chances are, you are have been harassed by the IRS now. You may have been receiving notifications imploring you to settle your taxes. Non-filing of taxes may lead to penalties, fines and even jail time, among others. Before what started out to be a simple issue goes out of hand, you might want to set things straight now. You may ask: what will become of me when I have obviously broken the law? This actually puts you in a complex position.

The first thing that you need to do is file all the tax returns that you haven't submitted to the IRS. Even if you are not sure of your financial capacity, you are still required to do this. If you are lucky, you may even be entitled to a refund and for this, penalties will not be imposed. But if you take too long to file your return, you'll lose the right to get such benefit. 

Depending on your specific circumstance, consequences for not filing your taxes will vary. If you're a non-filer, cleaning up your tax records will cause the IRS to stop enforcing their collection procedures on you. In fact, many people who have not filed tax returns do not really owe the IRS anything. They simply did not file because they did not have the time or didn't have the needed background. As a result, the simple excuse is now a major legal battle.  

It's a good idea to use the services of a tax professional when you decide to file for taxes that should have been filed before. He/She will prove to be a useful resource in helping you file your taxes properly and in assisting you in dealing with present and subsequent problems with the IRS. In addition, he/she will be able to give you good tips on IRS guidelines because of his/her solid experience in the field. 

Be sure to bring as much information as you can when meeting with your tax professional. He/She will be the one to identify which documents are more useful than the others. You must bring all of your W-2 forms, 1099's, receipts or supporting documents for certain expenses, social security numbers of your dependents and a photocopy of the last tax return that you've filed with the IRS. Your tax accountant should have full access to all of these. In effect, he/she will have a less difficult time in reconciling and straightening out your tax records.

Refunds and benefits from the Social Security are largely affected by the filing of your past tax returns. The IRS outlines that you should have filed for your corresponding taxes within a three-year period if you would want to claim a refund. After that, your right to a refund is lost and essentially, you have given up your right to that particular amount of money. If you are self-employed, not filing your tax returns will mean not receiving credits that will be carried over to your Social Security retirement or disability benefits. Because of this, the IRS cannot report your earnings to Social Security, and consequently, you will not be entitled to a credit.

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