There is NO statute of limitations on taxes due on unfiled tax returns. There is a SOL on taxes due on a filed tax return. So if you're reading this thread and you have some ???s about taxes...please let me know if they are on filed or unfiled returns. Also from what year they are from...in that way I can address the questions more specifically. thanx, clc
Thanks for the info CLC, but from what I understand, if you don't file, the government will file for you. And they have 10 years to collect before it's uncollectable. Thats what I read last year on the IRS website. Are you some type of IRS agent?
The IRS will only process refunds for the current tax year and 3 years prior- so if they owe you, and you don't claim it, you lose it after the 3rd year. I don't know about how long they can come after you - a tax lein would be pretty hard to shake (credit, employment) unless you live strictly on cash only. -mj
a "sfr" (substitute for return) is a return that the irs files for you if you don't file...but make no mistake (caps for emphasis not for shouting) IT IS NOT CONSIDERED A FILED RETURN. The only way an "sfr" could be considered a filed return is if you met with the irs and signed an 840C...which basically says you agree with their numbers. The way an sfr is done is the irs uses your w-2 info and creates a return as if you were single with no dependents. If you don't file they use this return to begin the collection process.But it is not considered for any legal purpose a filed return because it doesn't have your signature on it. So if somebody is waiting around for 10 years on the mistaken belief the sfr will make the tax go away...please let then that this is not the case. In answer to your "irs agent" question...no I am not. I am Estates and Trust paralegal...I have a tax lien which was filed in 1997 against me for unfiled returns from 1988, 1989...I didn't discover the lien until last year when I ran a credt report. Since that time I have consulted with tax atty, bk aty and a tax CPA. I also have over 1,000 printed pages of research into this...including IR Codes and Tax court decisions. As a paraegal I am well trained in legal research...so I have done my homework on this one. Hope this info helps. clc
lizardking- the 3 years is on filed returns...not on unfiled or fraudelent returns...there is no SOL on these. clc
lizardking, exactly correct...unless your filed return was fraudelent. The fraudelent return is usually only caught later i.e. the irs catches you for money laundering in 2005...they can then go back and audit your returns to the first return you ever did. clc
lizardking- My advice to people is keep your returns forever...with the records you used to file them. The irs's computer systems have all the information...there are different transcripts they use...there is the literal transcript MFXTRA and the SUPOL and the IMF and the BMF if you own your own business. So basically they keep all your info...so maybe we should as well. I did not take my own advice years ago and so now in dealing with the irs I have to rely on their word :={...so my advice is coming from experience. clc
