Can a friend who stopped filing 10+yrs ago, collect past/lost refunds?

[12000west]

Can a friend who stopped filing 10+yrs ago, W-2 employee (less than 70K) / totally vanilla situation / non home owner,  collect past/lost refunds?

[Bsch4477]

you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

[TomK2023]

There's no penalty for failure to file if you're due a refund. However, you risk losing a refund altogether if you file a return or otherwise claim a refund after the statute of limitations has expired. 

An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances. 

After the expiration of the three-year period, the refund statute generally prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid. 

However, the statute of limitations for the IRS to assess and collect any outstanding balances doesn't start until a return has been filed. In other words, there's no statute of limitations for assessing and collecting the tax if no return has been filed.

IRS - Topic 153 What to do if you haven't filed your tax return

[xmasbaby0]

Any refunds from years earlier than 2020 have been forfeited.  And if a 2020 return is not filed by April 15, 2024, that refund will also be forfeited.

If your friend owes tax due, the IRS will still want to be paid with interest and late filing penalties for any or all of those years.

Your friend should consult with a local paid tax professional to get caught up.   This does not sound like a good idea for a do-it-yourself project for your friend.   Does he even have all of his W-2 's, 1099's etc.,  etc. for all of those years?   

If he really wants to tackle it--or some of it--

TurboTax has software for 2020 onward.   Software is no longer available from TurboTax for earlier years, nor would it be supported even if you find it on eBay, etc.  Updates are not available.   It is also too late to receive a tax refund for a tax year earlier than 2020---those refunds have been forfeited.   BUT if you owe tax due you still have to pay with penalties and interest.   There might be other software providers that have software for those years, but you will not receive refunds for the returns even if the forms show a refund.

Each tax year has to be filed separately using the forms and software for the specific tax year.  They cannot be combined in any way--do not even put them in the same envelope when you mail them.  

Your friend who has not filed a tax return for ten years probably missed out on the stimulus checks for 2020 and 2021.   That might be an incentive to start getting caught up.

You cannot change the tax year.   The current online program is for 2023 only.   Only a 2023 return can be prepared online and only a 2023 return can be e-filed.

Online preparation and e-filing for 2020, 2021, and  2022 is permanently closed.

To file a return for a prior tax year

 If you need to prepare a return for 2020, 2021, or 2022  you can purchase and download desktop software to do it, then print, sign,  and mail the return(s)

https://turbotax.intuit.com/personal-taxes/past-years-products/

You may also want to explore purchasing the software from various retailers such as Amazon, Costco, Best Buy, Walmart, Sam’s, etc.

Remember to prepare your state return as well—if you live in a state that has a state income tax.

https://ttlc.intuit.com/community/state-taxes/help/how-do-i-contact-my-state-department-of-revenue/0... 

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

Note:  The desktop software you need to prepare the prior year return must be installed/downloaded to a full PC or Mac.  It cannot be used on a mobile device.

If you are getting a refund, there is not a penalty for filing past the deadline.  If you owe taxes, the interest/penalties will be calculated by the IRS based on how much you owe and when they receive your return and payment. The IRS will bill you for this; it will not be calculated by TurboTax.

[Opus 17]

The filing deadline for 2020 taxes  was May 17, 2021, due to the pandemic, so your friend has until May 17, 2024 to file a 2020 return and claim any refund or credits.  Anything older than that is out of bounds.  Your friend has a bit more time to file for 2021 and 2022.

[xmasbaby0]

@Opus 17 Thanks-----I forgot about the extra time for 2020!