I Haven’t Filed A Tax Return In Years [ 7 Must Know Tips ]

IRS Income Tax Filing Requirements

I haven’t filed a tax return in years. Do I have to file?

The first question is a very important one. There are different filing requirements if you are single or married.

Also, there are different filing requirements if you are self employed or own a business.

Wage Earners

You will need to file an income tax return for a specific tax year, when you are over the standard deduction for that year.

For example, the wage earner income tax threshold for tax year 2022 is as follows:

• $25,900 for married filing jointly
• $19,400 for head of household
• $12,950 for single or married filing separately

Generally, if you earned over the above amounts and you are a W2 wage earner, you are legally required to file an income tax return.

Self Employed [ 1099 ] or Business Owner

If you have self employment net income of  $400 or more, you have a filing requirement for that year.

If you are a commissioned salesperson and receive a 1099 at the end of the year, it is often in your best interest to file an income tax return as your gross income will be reported to the IRS, without any of the expenses you have incurred in generating your income.

If you are a business owner and you file a corporation, you will also be required to file corporate income tax returns [ Form 1120 or 1120-S ] for said corporation.

If you have not filed a business income tax return in 3 or more years, there are several issues that you need to be aware of:

1. Does the business owe back taxes? If so, certain states may no longer consider your corporation valid.
2. Was the business closed? If so, we will need to investigate your tax matter to determine if you will be held personally liable for the taxes.
3. Did your business have payroll filing requirements [ Form 940, 941 ]? If so, the IRS may personally assess you of the trust fund portion of the payroll taxes. 

Personal Income Filing Deadline

The income tax filing deadline is April 15th unless April 15th falls on the weekend or a holiday. If that is the case, the filing deadline is the next business day.

April 15th is the income tax filing deadline and also the income tax payment deadline.

Many people make the mistake of filing a six (6) months extension to October 15th and think that the extension to file is also an extension to pay. 

That is incorrect. 

As such, if you owe income tax for a given tax year, interest and penalties begin to accrue as of April 15th of that year.

Six (6) Year Rule [ Generally ]

Some states do not have an  income tax filing requirement because there is no state income tax in certain states. For example, Florida and Texas do not have state income tax [ lucky you! ]. 

However, the fact that your state does not have a filing requirement does not relieve you of the federal tax laws.

Also, many states, like New York, have different income tax filing requirements than the federal government. 

For example, NYS does not allow you just to file the last six (6) years to be legally compliant under the NY tax laws.

Therefore, make sure that you consult a knowledgeable tax attorney, when you have years of unfiled taxes so you can be guided accordingly. 

Haven't Filed Taxes for 5 Years

Without filing an income tax return, the IRS may file an income tax return for you [ called a Substitute for Return ] without the benefit of any of the expenses.

Haven't Filed Taxes for 10 Years

Tax problems only get worse with time. The IRS can continue to pursue you forever as the Statute of Limitations on enforcement and collections  will never begin. 

7 Reasons You Need to File Your Taxes

1. The failure to file an income tax return is a crime. In certain cases, it can be considered a felony. 
2. The IRS, and in certain circumstances, the state in which you reside will file an inflated income tax return for you and begin aggressive enforcement against you. 
3. It will be difficult to buy a house, a car, or even purchase health insurance in certain circumstances without your income tax returns being filed.
4. The government may not issue a passport.
5. If you want to get married, tax issues are often a deal breaker for many potential spouses.
6. If you have children, your child may not be able to get student aid without your income tax returns being filed. 
7. You may be diluting your Social Security benefits if you are self-employed.

Best Way to Get Your Past Due Taxes Completed

It is overwhelming if you haven’t filed taxes in years.

The worst thing that you can do is just haphazardly start filing your income tax returns without the proper planning.

Failing to create the proper strategy prior to filing will often cost you a lot of money in the long run.

Here is the best way to go about it:

1. Have an experienced tax attorney file power of attorney on your behalf with the taxing authorities to research and investigate your tax matter. By doing an investigation and review, your situation will not be flagged. 
2. We will determine the number of years that need to be filed so that you are fully and legally compliant and you will get the proper guidance to help you save money on your tax filing requirements.
3. If you do not have records, we will obtain your tax records from the IRS so we can prepare your income tax returns. Once again, we will not wake up the IRS.
4. We will file all your necessary tax returns on your behalf.
5. We will make sure that you are properly protected from the taxing authorities throughout the process. You will never have to speak or meet with them.

If you need to get back on track with your unfiled taxes, we are here to help. 

We handle non-filer issues on a daily basis and can make sure that you are properly protected throughout the process.