I fucked up. I’m a fuckup. Now that that’s out of the way, life was too much for me and I haven’t filed in two years. Without judgement, please - where do I turn to fix this? I would’ve gotten several hundred $ each year, so I owe nothing. But I don’t know what to do to fix. Please don’t just yell at me, I need help. Thanks.
Did you actually have income over the filing threshhold?
Don’t sweat it, this is easy to fix. You can download old tax forms from the IRS. Just fill them out and send them in. If you don’t have your records, it will be a pain, but you can call the necessary banks, employers, etc. and get copies from prior years.
If you don’t owe anything to the IRS, there will be no penalties or interest. Get your documentation together and file the returns.
Contact the IRS Taxpayer Assistance Center
It’s free, and if your problems can’t be solved on the phone, they will sit with you as long as needed.
You are going to have to contact the IRS at some point, so it’s probably best to start with the people who are, in theory, there to help you.
Don’t sweat it man. Sounds like you are due a refund, for which you have up to three years to claim. You will get your refund in full just file the normal way ie. paper and pencil or turbotax and mail it in.
The only way they would get mad is if you had some less common situation. Like if you ran a Sch C business at a loss or little net income, or had big stock sales, but the IRS only assumes the gross income and so may cause problems until you send them the new ones. Otherwise, if you’re just working a W-2 job and have no complications, they won’t care, but get your refund soon! Sometimes the IRS even warns you that they have some of your money.
Yeah mail it in, I don’t think e-file is set up for previous years.
File now. I didn’t file for two years believing that I wasn’t required to. A few years later, I determined that I should have filed. I filed the returns and the IRS didn’t beat down my door.
I was under the impression that you had three years to claim a refund, and after that, poof.
No need to panic. No need to call the IRS.
The only way to remedy a non-filing situation is to file the tax returns you forgot to file. As others have already pointed out, just get the forms free from the IRS web site or, if you are not comfortable filling out the forms yourself, go to the Turbotax or H&R Block web site and download copies of the software for the years in question (hint: you can find tax software from previous years for cheap on eBay) and file.
Efiling is still available for 2011, for previous years you will need to mail in forms.
The only hassle is going to be getting old W-2 forms or other records if you didn’t keep them. As has already been pointed out, you may have to contact payers or employers for new copies.
If you can’t get copies of Form W-2 or 1099 from the payers, you can get them from the IRS by filing Form 4506-T. Note that the transcript you will get will NOT contain state tax information.
Which also reminds me, you will also need to file past-due returns with your state, if your state has an income tax.
Just a follow up, I am assuming that you are just an ordinary tax payer who gets income from a job and maybe some interest from a bank account or some dividends from shares of stock or mutual funds.
If you are involved in something complex, like an election to change accounting methods or sophisticated tax shelters, cancellation of debt income, or something like that, you should consult a tax professional who will help you explore your options.
Federal efiling for 2011 returns is available until October 15, 2012. Returns from previous years should be mailed in on paper. State procedures vary by state.
Since the OP is looking for legal advice, let’s move this over to IMHO.
Colibri
General Questions Moderator
If I know I’m getting a return I never file on time. I have gone two and three years on separate occasions without a problem at all.
What happens if the late filer owes instead of being eligible for a refund? I have a friend in this situation. She is afraid to file her late returns for fear of incurring a now-huge debt(because of penalties and interest) that she won’t be able to pay. She had $$ withheld, just not enough apparently.
Refund.
That sounds like putting your head in the sand. She doesn’t want to owe some penalties now, so that they can assess larger penalties in the future? There are forms where you can bargain with the IRS, including a rather low interest installment plan. Note that penalties and interest are separate things, and may be treated differently.
The first thing I would like to say about that is that the penalty for failure to file on time is 10 times as much as the penalty if you file but can’t pay. I point this out because so often people who find they owe money but can’t pay it don’t file their tax returns on time. Other people who neglected to file in the past are then afraid to file future returns even if paying is not a problem. These people are digging a hole for themselves that is ten times as deep as if they had simply filed and then made arrangements to pay.
So there are three possible penalties:
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Failure to pay penalty. This penalty is 0.5% per month (not per year) for each month or partial month calculated on the amount due. Maximum penalty: 25%. Once the IRS sends a notice of intent to levy, this penalty is increased to 1%. If you file on time and enter into an installment agreement, the penalty is decreased to 0.25%.
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Failure to file penalty. 5% per month or partial month on the amount that should have been shown as due on the return. Note that paying the amount due (after the due date) does not stop (or decrease) the penalty. The only thing that can stop this penalty is filing the late return. Maximum penalty: 25%. Minimum penalty for returns more than 60 days late: $135 or 100% of the tax that should have been shown as due on the return, whichever is less. Reduced to 4.5% if Failure to Pay penalty is due in the same month.
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Interest. In addition to the above penalties, interest is calculated using a variable rate on the unpaid balance. During the last couple of years, the interest rate has been 3% to 4% per year (not per month).
If you owe money, not filing just makes things worse, a lot worse. File on time (or as soon as you can if you are already late) and work out payment arrangements with the IRS. Consult an experienced tax professional for help in negotiating payments.
Note that there are exceptions. For example, if she was in a combat zone or natural disaster area or circumstances beyond her control prevented her from filing, some of the penalties could be abated.
The above are federal penalties, state penalties may also apply.
You will not be able to collect any Earned Income Credit for past years. But if you had no qualifying child, you wouldn’t get any anyway.
Cite?
Some low-income taxpayers who do not have children can qualify for the Earned Income Tax Credit.
No, you can get EITC if you have no kids. You need to be: 25 - 64, and make a paltry amount of money normally. I think you get $464 max, compared to $5751 for 3+ kids. And it phases out if your income goes up. A no-kid person gets nothing after $13,450 (sorry, 2010 amounts). I make more than that and I am poor.
The one thing I know excludes you from EITC is you can’t file for 10 years if you fraudulently claim it (not qualified to be your dependents, etc.)
I would go into the IRS office in the major city nearest you. They have always helped me to do my return and have even gotten me a larger refund than I was able figure for myself. They may even assist with state tax returns if your state has an income tax.
Thank you, Alley Dweller, for your excellent information. I knew the problem was bad but never suspected it could be this bad. Unfortunately, I don’t think this will encourage her to do what she needs to do. On the contrary, I think she will want to hide her head in the sand even more. <sigh>
I just want to go on record here to say that this really is about a friend of mine, not me. I am diligent about filing and paying my taxes. The IRS scares the crap out of me!