If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the due date of the return. The same rule applies to the right to apply for tax credits, such as the earned income credit. Unfortunately, there is a limit to how old you can file a tax return to request refunds and tax credits. This IRS only allows you to apply for tax refunds and credits within three years of the original due date of the tax return.
If you don't file your return within three years of the due date, you could end up not receiving a tax refund because you can no longer apply for lucrative tax credits or any additional withholding from your paycheck. In fact, the IRS has no time limit for collecting taxes or charging penalties or interest for each year you don't file your taxes. However, after you file your taxes, there is a 10-year limit for the IRS to collect the money you owe. State agencies have their own rules and often have more time than the IRS to collect taxes.
The penalty for filing a return after the deadline is 5% of the taxes you owe per month for the first five months, that is, up to 25% of your tax bill. We offer tax relief and tax resolution services to businesses and individuals in Colorado and around the country. Review the tax forms you collect for the year of the tax return you file to make sure you are using the correct forms. If you are having difficulty preparing your return, you may be eligible for help through the Voluntary Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs.
See H&R Block Tax Audit & Notice Services to find a local tax professional who can consult the IRS for you. If you don't file your return, you may have to pay an additional 5% of your unpaid taxes for each month your tax return is delayed, up to a maximum of five months. However, the IRS only allows you to apply for tax refunds and credits within three years of the original due date of the tax return. Your tax professional can prepare and file accurate back tax returns, set up a payment agreement with the IRS for you, and resolve any other issues related to your overdue returns.
You can work with a tax professional who can research what tax returns need to be filed and help you gather the information you need, research your account, and file your returns. In addition, you can request tax documents from the IRS by filing Form 4506-T, also known as a request for a transcript of a tax return. In these cases, filing a tax return could result in a tax refund that allows you to deposit money into your bank account. When this situation occurs, you can file an original tax return or file a petition with the Tax Court within 90 days of the date of the deficit notice.
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