I was wondering what is the procedure if I haven't filed taxes in a few years. I was planning on filing this year but what will happen if I never filed in the years previous? I have worked the whole time just never got around to doing it. So what am I up against? Is there going to be a problem. Will I have to backfile (is that possible) or what....

tickle

You are in for a surprise if you havent filed in the last few years, you will probably owe a lot in back taxes. Why, for heavens sake, didnt you file ?? Why put yourself up for this much hassle ?

shygrneyzs

I am surprised the IRS has not found you yet - they have received the information from your employer(s). Contact a tax expert and make amends with the IRS. You could be in line for a penalty and you could owe back taxes with interest and you could also be in line for a refund. But hiding from this is not going to make it easier.

If you do not want to contact a tax professional, at least call the IRS. Sooner than later.

Fr_Chuck

Ok, you merely file for all the years you have not filed, depending on your taxes, you may still have refunds due. If not, file even if you can't pay the back amount due, then work out a payment plan with the IRS

Mobea

This is not uncommon, so don't feel so bad. Contact a good tax professional and they can start the process to get you caught up on your tax returns. When you are current on filing ALL of your tax returns, and the dust settles , if you still end up owing, the tax professional can also help you set up a payment plan with the IRS. Try to get to a tax professional as soon as possible as they are going to start to get very busy, and if you only have 3 previous years to file, plus the current year for 2007, they should be able to have it all settled for you within a few months. It will be okay, just go ahead and get started. Nobody is going to chop you up into little pieces.

envee505

So then another question would be....what if I dont have my old w2s? How do I go about it? Now that I think of it..it was only last year I didn't file. THe year before that my fiancee claimed me as a dependant bc I did not work due to pregnancy and so forth. But what can I do to claim the year I did work without the documentation?

Mobea

You can call the IRS (Internal Revenue Service) and they will send you a transcript that shows all of the income that earned. You can use that to file your tax return. You're in good shape.

s_cianci

The more fundamental question is have you paid taxes during the last few years? There's a difference between paying and filing. If you have been steadily employed during the period in question then no doubt your employer has been withholding tax payments and sending them to the IRS under your social security number. Your employer estimates your taxes based on your income and the information you provided on your W-4 form when you first went to work for them. In that case, the purpose of filing a return is simply to reconcile your payments and determine whether you've underpaid and owe a difference or if you've overpaid and are due a refund. I believe that tax returns can be amended up to two years retroactively, so at this point you could file for 2005 and 2006 (assuming you still have your W-2s and other necessary documents.) If it turns out that you owe back taxes you will probably have to pay additional penalties. Now, if you're self-employed then filing your tax return is for the purpose of determining how much tax you owe and making the payment to IRS, since in that case you obviously don;t have an employer withholding payments periodically. In that case you could be up against a more serious situation if it's been determined that you've evaded paying income taxes during the period in question. It may still be possible to reconcile with the IRS but you'll have to have a substantial amount of cash up front to essentially pay your back taxes in a lump sum. At this point I'd advise you to just file your 2007 return in the usual manner and let the chips fall where they may. Rest assured that the IRS will contact you if there are any discrepancies from prior years that need to be addressed.

Mobea

There is a three year limit from the date of the original tax return was due for filing for a refund. The refund is forfeited after that. Did your fiancee claim the baby on his tax return last year? Did he claim you as a dependent again last year even though you worked? Were you a student during 2006? I would suggest going to a professional tax preparer and letting them contact the IRS for your transcript,(we get it a lot quicker) and then they can prepare both your 2006 and 2007 returns. But I would do that as soon as possible as they are going to get very busy soon, and they can have your 2006 return finished by the time you get your 2007 w-2's if you worked. Do not ignore filing your 2006 as suggested in the above post. If you end up owing taxes for 2006, then there is a penalty for filing late and the interest has been accruing daily since April 17th of 2006. Take care of it now.

no1photogirl

Yeah, I would definitely enlist a tax professional. I actually had a similiar situation and I was able to file during a year when they had tax amnesty - but definitely file right away - I actually came away with quite a bit of money, as I had worked continuously for many years.