I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, Texas, New York, California and elsewhere. If you haven't filed recently, or in years for that matter, you should file all returns as soon as possible regardless of the reason for not filing.
If your return(s) wasn't filed by the due date (including extensions of time to file):
- You may be subject to the failure-to-file penalty, unless you have reasonable cause for your failure to file timely.
- Tax not paid in full by the original due date of the return (regardless of extensions of time to file) may also result in the failure-to-pay penalty, unless you have reasonable cause for your failure to pay timely.
- Interest is charged on taxes not paid by the original due date, even if you have an extension of time to file or pay. Interest is also charged on penalties.
- There's no penalty for failure to file if you're due a refund. However, you risk losing a refund altogether if you file a return or otherwise claim a refund after the statute of limitations has expired. An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances. After the expiration of the three-year period, the refund statute prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid. However, the statute of limitations for the IRS to assess and collect any outstanding balances doesn't start until a return has been filed. In other words, there's no statute of limitations for assessing and collecting the tax if no return has been filed.
This situation can be and is very stressful. Fortunately, with the right guidance and experience, matters like this can be resolved, and penalties abated.
If you or someone you know has back taxes to deal with, don't hesitate to contact us immediately at 303-499-2700 or by email at email@example.com.
825 S Broadway
Boulder, CO 80305
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