Relax! Three things to keep in mind:
One. Get advice on whether you even have to file your back returns. The obligation to file a tax return is triggered by the receipt of taxable income in excess of the statutory filing requirement for the tax year in question. Thus, first determine if you were even required to file. Furthermore, the IRS will usually not chase non-filers six years after the filing due date. IRS Policy Statement P-5-133. Exceptions are where the government believes substantial underreporting of income or fraud were involved.
Two. If you do have to file, the IRS now allows non-filers a fair opportunity to come forward without being prosecuted. However, if the IRS finds you first, you may not be granted the same leniency. You also feel a little better to know that
Three. Remember that the 10 year time limit to collect starts with an assessment of tax. Unless you file a tax return, the time to collect won’t start. So it just makes good sense to get the right tax advice and sleep well at night knowing the IRS is not about to rear its ugly head!
Get the Faith Firm free book, How to Get Tax Forgiveness. Or give us call!