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Unfiled Taxes

Almost every person eventually faces a bill they can’t afford to pay. And, with federal tax bills, some people believe that not filing a return is the only option available . However, filing your tax return is your legal responsibility as a United States citizen and the consequences of not filing can be severe. The Failure to File penalty is 25%! Therefore, tax returns should always be filed on time, even if they cannot be paid.

If you find yourself unable to pay your tax liabilities, there are several options available to you. Depending on your individual circumstances, you may be entitled to one of these IRS relief programs:

  • A payment plan, or Installment Agreement, where you can make monthly payments in order to settle all or part of your outstanding taxes, like with a Partial Pay Installment Agreement.

  • A settlement, such as an Offer in Compromise, where you can negotiate on the amount owed and pay less than what’s due.

  • A deferred payment plan by receiving a Currently Not Collectible status, for instances where you may be facing financial hardship.

Before applying for IRS relief, it’s important to first file your last six years of delinquent tax returns. Once this has been done, you can then determine if you qualify for any of the above programs. To ensure you are protected and taking the smartest strategy, it is important to consult with an experienced tax lawyer who knows how to navigate and negotiate with the IRS.

To schedule a free case evaluation, call (844) STOP-IRS now.

What Happens if I Don’t File my Taxes?

If you don’t file your taxes, the Internal Revenue Service has the authority to take several actions against you, including filing a Substitute for Return (SFR). This is where that IRS files your tax return for you. The IRS will file your tax return with the worst possible filing status with no deductions. Typically, SFRs result in substantially higher amounts of tax due than correctly filed tax returns. Then, they can start taking collection action, based on those SFRs. Those collection actions can include:

  • Filing a lien against any property that you own

  • For a business, seizing your business assets or Accounts Receivable.

  • Seizing your home, car, or bank accounts

  • Taking your tax refund

  • Garnishing your wages

What are the Penalties for Unfiled Tax Returns?

If the tax deadline lapses and you have not filed for an extension, or if you miss filing past the new due date, then you will be subject to penalties and interest fees. These penalties begin accruing from the date of your delinquency and are calculated at, not exceeding 25% of the total outstanding balance due plus interest.

The penalties include:

  • Failure to timely file a return – 25% of the balance due for a late return

  • Failure to pay your tax liability when it is due – 1% of the unpaid portion plus interest per month.

How an Experienced Tax Lawyer Can Help with Unfiled Tax Returns

Taxes can be confusing, but they don’t have to be. If you need help filing your taxes, we’re here to help. We’ll walk you through the process step-by-step so you know exactly what to do and get you back on track.

At JD Tax Law, we are a full-service tax law firm with a proven track record of success. We represent individual and business taxpayers in all aspects of tax resolution, including assistance with unfiled tax returns. Our team has over 15 years of experience dealing with the IRS, and we have successfully resolved countless tax issues and provided relief for hundreds of clients.

To get a tax resolution plan that is tailored to your specific tax situation, please contact us for a free, no-obligation consultation.
Schedule a time that works best for you, or just give us a call now!