Hoping for an IRS payment plan? It’s possible, but if you have not filed your income tax returns for the past six years, the IRS will not accept any repayment proposal from you. If you owe taxes from prior years but have not filed all returns, IRS collections will send you notices, which might result in a levy action. It is best to file all required income tax returns before the IRS begins its collection protocol.
If you haven’t heard from the IRS lately, you’re not alone. The IRS put its usual collections efforts on pause for about three years but recently announced that collections will begin again in late summer. You might receive notices threatening liens or levies. If you have not filed all your returns, you will need time before you can address the liabilities. It’s best to file the returns before you deal with any tax liability. The IRS might file a return for you and assess a liability. This is called a substitute for return. The IRS calculation of your tax owed usually is higher than if you had filed yourself.
How long can the IRS collect unpaid taxes?
The federal government has 10 years to collect assessed, unpaid income taxes. The key word is assessed. If a tax return has not been filed by the taxpayer or the government, then the statute of limitations does not begin, resulting in potential liability in the future.
Always open — and reply to — notices in a timely manner. If you ignore them, your options decrease with time. It then might become costly to appeal any governmental decisions.
Call a tax specialist to help you determine the next steps. In a nonthreatening manner, taxpayers can reach a resolution to their tax situations.
Denson Pepper is a CPA in the Acworth/Kennesaw area with 30-plus years of experience. He is an expert at helping people resolve their income tax problems. Call 678-797-5241 to make an appointment.
– CPA Denson Pepper, with more than 30 years of IRS experience, can be reached at 678-797-5241.