Unfiled Tax Returns Help From Licensed Tax Agents in Pasadena, CA
Not filing usually starts with a reason that made sense at the time: a hard year, a missing form, a balance you could not pay. Then one year becomes several, and the longer it goes on, the harder it feels to face. At Fresh Start Tax Relief Services in Pasadena, our licensed tax agents regularly help people with years of unfiled tax returns get back on track without judgment. We are a women-owned business with decades of experience dealing with the IRS.
What Happens When You Stop Filing
If you have not filed in a number of years, the IRS will eventually take it upon itself to file for you. You never want that. An IRS-prepared return may leave out deductions and credits you are entitled to, which can stick you with a much bigger liability than you would have had by filing on your own. You will also face significant penalties for filing late and paying late, and interest keeps building on the whole balance.
Risks People Often Overlook
The tax bill is only part of the cost of not filing. Several other consequences catch people by surprise.
No Time Limit on Unfiled Years
For a return that was filed, the IRS generally has a limited time to assess additional tax. For a year with no return, that clock never starts. An unfiled year can be pursued at any point in the future.
A Minimum Penalty for Very Late Returns
When a return is more than 60 days late, a minimum failure-to-file penalty applies, equal to either a fixed dollar amount set each year or 100% of the tax due, whichever is less. Even modest balances can carry a meaningful penalty.
Lost Social Security Credit
If you are self-employed, your Social Security credits come from the self-employment income reported on your return. No return means that income may never count toward your future benefits.
Trouble Proving Your Income
Mortgage lenders, landlords, and financial aid applications often ask for recent tax returns or IRS transcripts. Without them, buying a home or helping a child apply for college aid can stall.
How We Bring You Current
Our process starts with finding out where you stand. We determine which years were never filed and which years the IRS already filed for you. Then we prepare and file each one correctly. Our filing tax returns page explains how we rebuild missing years, even when your records are incomplete.
Often, we can reduce the tax liability that has accrued and bring you legally current. Once the true balance is known, we work on resolving it.
Penalty abatement may reduce the late filing and late payment penalties, and a payment plan or Offer in Compromise may address what remains.
Planning So It Does Not Happen Again
Getting current is the first goal. Staying current is the second. Once your back returns are filed, we can create a year-over-year tax planning and preparation plan moving forward, so you know what to expect each year and are saving money now and in the future.
Serving Pasadena and Taxpayers Nationwide
We help clients in Pasadena, South Pasadena, Glendale, Arcadia, and across Los Angeles County. We also work with people far beyond the area: "Not only do we service every single county in California, but we service taxpayers nationwide." Learn more about the Tax Superwomen on the Fresh Start Tax Relief home page.
Frequently Asked Questions
Is there a time limit for the IRS to assess tax on a year I never filed?
No. The IRS's time limit for assessing tax generally starts only when a return is filed, so an unfiled year can be pursued indefinitely.
Is there a minimum penalty for filing very late?
Yes. When a return is more than 60 days late, a minimum failure-to-file penalty applies, equal to a fixed amount set each year or 100% of the tax due, whichever is less.
How does not filing affect my Social Security benefits?
Self-employed taxpayers earn Social Security credits through income reported on their returns. If no return is filed, that income may not be credited toward future benefits.
Why might I need my past tax returns?
Mortgage lenders, landlords, and financial aid applications often require recent returns or IRS transcripts to verify income. Unfiled years can delay or block those applications.
What happens after my returns are caught up?
We help resolve any remaining balance, then create a year-over-year tax planning and preparation plan so you stay current going forward.