Thursday, August 3, 2023
Dear Erica,
- I have a friend that hasn’t filed in a long time….. what would be your advice to her?
- She’s a bartender and I believe it’s been over 8 years since she filed. Help!
– Jay
This one is easy… SHE NEEDS TO FILE! The bad news is, if she had refunds, she lost most of them, because you can only go as far as 3 years back to claim refunds.
The even worse news is if she owes money. The interest, penalties, and fees keep increasing fast and the IRS can put a lien on her bank account or even go after her house, etc. Don’t think that because she hasn’t filed, the IRS doesn’t know of her income. If she got W-2s, 1099s, etc., then the IRS knows about it. If by any chance she got paid “under the table”, they have ways to get to her as well.
My recommendation is to file immediately. If she owes, she can get a payment plan. If she gets a refund, then she will be able to at least get the last couple years back. Either way, never ignore the IRS.