If you have unfiled tax returns, the IRS can ruin your life. Failure to complete past due tax returns can prevent you from receiving credit in addition to the IRS continuing to amass penalties and interest on the back taxes. Additionally, if you owe more money than you would have if you had filed your past-due tax returns, the IRS may file a tax return on your behalf and pursue payment of the full amount.
If you owe a refund and failure to file, there is no penalty. However, you run the risk of losing the entire refund if you submit a return or make another refund claim after the unfiled tax returns statute of limitations has run out. In most cases, a refund will only be granted if the initial return is filed within three years of the due date. The refund act prohibits issuing refund checks after the three-year window has passed. Yet, the IRS’s ability to assess and collect any unpaid balances doesn’t have any time limit until a return is submitted.
Hiring a tax expert is the best approach to catching up on your unfiled taxes. In some cases, tax problems can be rectified by submitting overdue tax returns. Tax professionals frequently assist their clients in reaching IRS compliance by completing a variety of back returns.
Many different professions prepare tax returns, including certified public accountants, enrolled agents, lawyers, and many individuals without professional credentials. Your tax preparer should be licensed in tax preparation and should be able to file your income tax return immediately.
It completely depends on your choice whether you should file your taxes yourself or hire a tax expert. In general, hiring a professional will be best for you if your return is more complicated. They have all knowledge about unfiled taxes and how smoothly can you come out of it without paying penalty to the IRS.