Tax FAQ Series – What should you know about filing prior year returns?

Filing a prior year return start the Statute of Limitations clock – as a general rule, the law allows the IRS to audit any return up to three years back from the date it’s filed. Once the three years are past, the IRS can’t question the return. But if the return is never filed, the 3-year clock doesn’t ever start. So we strongly recommend that whenever there is any meaningful activity, carry-forward capital loss, etc. that the return be filed even if there isn’t a refund. So if these returns aren’t filed then the IRS can question them anytime they want and this could have a significant impact on any future years.

If you need assistance filing prior years’ tax returns, contact us today at (480) 888-7111 to schedule your free consultation.


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