I filled out and submitted an SF 85. I filled out everything to the best of my ability however I filed my taxes late for 2023 and 2024 about three months ago. I checked the status of my returns and they still haven’t updated on the IRS website. The problem is I didn’t disclose the late return thinking it was already filed. I did get a letter from the state and I have the transcripts and certified receipt of the sent returns.
My questions is will the investigator see this as a problem since I didn’t disclose the fact and it’s not showing on the IRS site?
I seriously doubt any investigator checks your tax background via the IRS web site lol. Yeah, they’re gonna find that and anything else you might have forgotten to list. Call your CSO or whomever helped you submit the form and let them know what happened.
Filing late should not be a big issue as long as you arranged it with the IRS. If you owed money and didn’t get an extension, that is called tax evasion and they do not like that.
If you report it and have a good explanation or have mitigated it, then you might be ok.
On the other hand, if you don’t report it and they find out, then that’s tax evasion and hiding it (lying to the feds). That would be a very difficult hill to climb.
Thank you for the response. I didn’t forget to disclose anything, I didn’t know the IRS had not indicated they had not yet processed my return. Also, I don’t owe any money.
I did let the person who is I charge of the process know and all they said was just tell them what happened if they ask.
I don’t like that response as I’m doing my best to be proactive.
Do you or anyone else have any advice that I could use to help improve this process?
On the SF85, section 19 reads something like “in the last 5 years have you filed to file or pay state, federal or other taxes when required by law”
Technically you DID fail to file on time. So when asked that question by your investigator, you should answer YES and explain why you filed late, what you did to rectify the situation and why you answered No on the form.
It’s not a huge deal unless you purposely tried to avoid paying taxes (and if you didn’t owe money, even the better).
That is why I asked if you owed any money or arranged anything with the IRS or filed for an extension. If you just want to hear that it’s all a-ok and nothing else, this probably isn’t the best place to ask. We try to give honest responses with as much detail as possible here so you have some idea what to expect.
That said, if you didn’t owe any money in either of those years, you should be a-ok.
The form only asks if you “failed to file”. That is quite different than asking if you filed late. They only want to know if you filed or not. Overdisclosure is a thing and can cause problems in the process for everyone involved.
I would say this is a “failure to file” but the fact that you are now up to date is a plus. Keep checking the IRS web site. I had some tax issues a few years back and as I recall they asked me to fill out one of those waiver forms so the agent could look at my tax records. I don’t know if that means they can’t see ANYTHING without those forms but I imagine they must be able to see some data with a routine check.
The one thing they have very little tolerance for is trying to stiff Uncle Sam.
If someone didn’t file their 2023 taxes by the April 2024 deadline, that is absolutely considered a failure to file and needs to be disclosed. Not an overdisclosure at all.
Ahhh, correct Weeble, but the rest of the sentence reads "when required by law’. You are required to file by the deadline. Either the return or an extension.
So I stand by my assertion that not filing anything by the tax deadline does require a YES answer to this question.
It doesn’t hurt to disclose it, especially since Subject did not owe taxes, and has since rectified the situation. If Subject chooses your thought about overdisclosure, then they are risking it becoming a bigger issue.
Investigators used to be able to pull tax transcripts. That is no longer an option as the IRS modified their rules and now will only mail transcripts to the individual named on the release (they used to be mailed to DSCA or the contractor’s business location). So chances are slim that DCSA will know about the late filing, but personally I’d disclose it and not have to worry about it being uncovered later.
***Just an opinion…I had MAJOR tax issues due to my divorce. I’m talking owing tens of thousands of dollars in back taxes to both state and federal. I disclosed everything, pulled every transcript from the IRS, paid with checks and then annually pulled copies of those cancelled checks as well as requested statements from the IRS. I had numerous interviews and had to submit documents promising to pay on time going forward. My clearance remains intact, and the debt has been paid in full. I just filed my 2025 taxes yesterday and for the first time in nearly 15 years am getting a refund.
Thank you to all of you for taking the time to reply. In the future I know exactly how to answer that question thanks to the knowledgeable people of this forum! God bless you all!
a few years back and as I recall they asked me to fill out one of those waiver forms so the agent could look at my tax records. I don’t know if that means they can’t see ANYTHING without those forms but I imagine they must be able to see some data with a routine check.