How far back can you file taxes?

[jeanmarc]

I have a client who did not file taxes for several years (more than 3 years). Without getting into too much detail, I want to know how far back they can file taxes. I understand that you can't claim a refund after 3 years but I read somewhere that you can file as far back as 6 years, and I think I read somewhere else that you can go even farther back. Thanks!

[qbteachmt]

I googled your topic's title.

How far back can you file taxes?

Google told me:

six years

The IRS requires you to go back and file your last six years of tax returns to get in their good graces. Usually, the IRS requires you to file taxes for up to the past six years of delinquency, though they encourage taxpayers to file all missing tax returns if possible.

I also see the IRS knows the answer.

[jeanmarc]

Thank you. As implied in my details, the internets also provided me with said information. But my luck ran out in search of a "rule" that said X number of years. The IRS web presence did not offer me that either (maybe I'm not a good "googler"). Therefore I posted my query to the community out of the sheer desire to know more and receive feedback from others who may have tackled quandaries like this before.

[BobKamman]

Without getting into too much detail, we can't tell you whether maybe you should try six years (if there is a foreign tax credit) or maybe even longer if there was an NOL in an open year that can be carried back.  It's generally a waste of time to go back more than three years, although some states allow four.  

Without getting into too much detail, do you think I should keep my used car that requires some maintenance, or buy a new one?  

[jeanmarc]

Thanks for your feedback. I was hoping to find a rule, a law, a tax code that said something like "you can file x amount of years back". Maybe I'll just contact the IRS to be sure.

As for your vehicle, many persons would agree that if your yearly maintenance and repair bills are more than the annual payments on a newer vehicle then you should get rid of the old one and get the newer one. It simply makes more financial sense. However, if you have some emotional attachment to said vehicle, then there is no monetary value that anyone can place on it for you. No further details are needed to rationalize this.

[qbteachmt]

"I was hoping to find a rule, a law, a tax code"

The reason you don't have a Hard Line is that you seem to be trying to apply the concept of Statute of Limitations to tax filings. That doesn't apply to filing taxes. There is no "safe at home if I didn't file X and they didn't catch me by Y."

Read these articles:

https://www.thebalance.com/back-taxes-filing-late-tax-returns-3193548

https://www.freshbooks.com/hub/taxes/how-far-back-can-irs-go-unfiled-taxes

https://www.thebalance.com/when-you-haven-t-filed-tax-returns-in-a-few-years-3193355

Basically, your client is playing russian roulette = how many spins are on that chamber before a round ends up in the barrel and the IRS has reason to pull the trigger?

[sjrcpa]

You can file all years. But do you want to? Do you need to? As already stated, 6 years generally gets you back in good standing with the IRS.

[Accountant-Man]

You can file 20 years if you want, and if you owe they will come after you.

[garman22]

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@jeanmarc wrote:

As for your vehicle, many persons would agree that if your yearly maintenance and repair bills are more than the annual payments on a newer vehicle then you should get rid of the old one and get the newer one. It simply makes more financial sense. However, if you have some emotional attachment to said vehicle, then there is no monetary value that anyone can place on it for you. No further details are needed to rationalize this.

🤣😂🤣 Great Answer!! 

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[qbteachmt]

"then there is no monetary value that anyone can place on it for you."

Isn't that the part that also applies to being married, for MFJ vs MFS? If it ain't worth it, don't stay married.

[BobKamman]

Of course, that assumes that maintenance costs are predictable.  I knew I needed a new battery, and I know I need new tires.  It's the unknown unknowns that bother me.  I suppose some of it could be managed by buying one of those warranties that wholesale for $400 and retail for $800, but those are like dental insurance -- not so much insurance, as a marketing plan for underemployed dentists.  

Or like Medicare Part D.  I can go to Walgreens and Costco and have them tell me which of 20 policies will results in the lower costs for the prescriptions that I know I need.  But what if I am diagnosed with something next month that requires medication with a cost of $1,000 a day.  (I have had more than one client tell me about how that happened.)  

New cars have their maintenance costs, too. It's just called "insurance" and, in many states where it's a personal property tax, "registration."  

It's fun to digress after May 17. 

[JONI9611]

I had a client who never filed a tax return and received a 1099 for over 30 years. IRS told he only had to file for seven years. How is that fair?

[qbteachmt]

"Fair" has nothing to do with Taxes. You know this, based on your current topics regarding who got vs who else wants to apply and get the Child Care and the Recovery Rebate amounts/credits. You've seen it in action.