Haven't done income tax in 15 years...help!!?

Question

My father is about to be 62 and getting ready for retirement but he is scared to file for his social security benefits because he hasn't filed his income taxes for 15 years. I told him that they could only go as far back as 3 years but wasn't sure. Does any one know what can be done by the IRS? Does anyone know what he can do at this point to make things right?

Answer 1

Since he has not filed, the statute of limitations on collections (which is ten years) has not began running.  As a matter of principal, they usually only ask for six years worth of returns in a case like this.  

Your father will need to file 6 years of tax returns to get caught up.  There could be several reasons the IRS has not contacted him in the past, but taking care of this now instead of later is definitely in his best interests.  

As for what they could do if he doesn't file, they could file a substitute return based on the information they have, and begin to levy his accounts (or even garnish his Social Security Income) for the tax liability plus penalties and interest they calculate.

There are many ways to obtain the information he would need to file the returns if he doesn't have access to it.  Update us if this is the case.

Hope this helps, and any other questions please ask!!

Answer 2

You are misinformed.  The clock on the statute of limitations doesn't start running until the return is filed, so they can go back the entire 15 years..

That said, was he self-employed, or did he work as an employee?  If he was an employee, his earnings were reported to the IRS, so if they didn't contact him about not filing, that would be because he had refunds coming for all of those years.  And any refund for tax years before 2005 has been forfeited, it's too late to apply now.  He can still file, but won't get his refunds.  But he should quit worrying, except to kick himself for the money he forfeited, and go ahead and apply for ss.

If he was self-employed, then he has major problems and should contact a CPA or enrolled agent, or a tax attorney.  And of course his ss benefits if he does collect any will be much smaller than they would have been if he'd paid his taxes.

Answer 3

You have gotten some bad information.  In theroy the IRS can go after an unfiled return forever but usually they only go after the last six or seven years.  The IRS has three years to adjust a return that has been filed and your father has three years from the due date of the return to get a refund and to get credit for the income on his social security.  Your dad by not filing has lowered the amount of Social Security Retirement he will receive.  I do recommend that you contact the IRS and Social Security to confirm my information.

Answer 4

Technically, you are required to file ALL your delinquent tax returns but as a matter of policy, IRS demands filing of only the last six year's returns except in cases of fraud. He should file for the past six years and let it go at that unless he gets a strong solicitation for earlier years.

A self-employed person's tax return is the input document for crediting their Social Security account.  Income on returns over three years old--this means 2004 and earlier--can't be credited.  Similarly, if there is a refund due on a return more than three years old, it normally can't be claimed.

Answer 5

I'm pretty sure they can go back more than 3 years.

Get a good lawyer who's up on tax law. The best way may be to be up front with the IRS.