SIOUX FALLS, S.D. (KELO) – Tax Day is less than a month away and the IRS estimates that each year approximately 10 million people fail to file their federal tax returns. However, if you have backlogs of years you didn’t file, you can still get ahead of them.
This time of year is busy for accountants at Ness Tax and Bookkeeping as they help last minute filers get their tax returns handled. They can even help those with years of piled up unfiled returns.
“Most people aren’t that familiar with tax law and it does vary by year so, generally speaking, I think people probably get a better outcome by coming to a tax professional to get those old returns done,” Timothy Ness, owner of Ness Tax and Bookkeeping, said.
And for people who are scared about repercussions because they haven’t filed previous returns, Ness says it’s better to just get it handled now.
“You know, it’s always the fear of the unknown. A lot of the times when we prepare some years, people are actually receiving refunds. And you don’t get in trouble for receiving refunds,” Ness said. “So, the first thing is to take that step forward, get things prepared and see exactly where you’re at. The longer you wait, the more chance the IRS is going to file a return for you, which won’t be to your benefit.”
However, if you do end up having to pay in, there are options to make it more manageable.
“If you owe money and you’re not able to pay everything you owe, IRS does offer installment agreements where you can pay perhaps $50 a month, $200 a month,” Ness said. “They’re relatively easy to work with and they would like you to keep current with your tax returns rather than keep digging yourself a deeper hole.”
Ness says there is a three year statute for claiming a tax refund, so that means if you are due a refund for withholding or estimated taxes, you must file your return to claim it within three years of the return due date. Any money you might’ve been eligible to claim beyond those three years will be kept by the government.
