In order to be in compliance with the IRS you need to have filed for the past 6 years and the present year. Any years that are unfilled the IRS has the option of filing a SFR, Substitute for return. When they do this they file in the best interest of the treasury. They DO NOT give you the deductions that you would normally file b/c it is not in their best interest. When the IRS does file a SFR you are able to still file for that year and a majority of the time the amount you owe the IRS will go down. The IRS doesn't have to file a SFR for you though... If you were due a refund for that particular year they will not file a SFR b/c that would not be in their best interest. Like any professional will tell you you are better off filing every year and collecting what is due to you. If you have unfilled returns and you owe the IRS they will keep your refund to go towards the amount owed to them and will continue to add interest, close to 20%, and will continue to add the penalties. The penalties will continue until you have filed all of your returns and have also either entered into a payment arrangement or have paid the debt off in full. Most people think that b/c they don't' make enough money they don't' have to file but that is not always true.
That's all I'm writing for now but check back later for updates and more tax related information.
That's all I'm writing for now but check back later for updates and more tax related information.
