It is illegal not to file your tax returns every year by the due date which usually falls on April 15. If you have not filed your tax returns, it is just a matter of time before the IRS catches up to you. Remember, the IRS is the most powerful collection agency and getting on their bad side is never a good idea.
What are the consequences of not filing tax returns on time?
1. If your unfiled tax return will have a balance due on the return, you
will be hit with failure to file and failure to pay penalties each day
the return is late.
2. If you have not filed your tax return in the last six years, the IRS will file the return on your behalf, known as Substitute For Return “SFR”.
The SFR filing does not allow you any deductions or credits that you may otherwise be entitled to.
3. If you are trying to get on a payment plan with the IRS, the payment will not be processed until all the returns are filed.
4. If you are requesting an Offer In Compromise (OIC), the OIC will not be processed until all the returns are filed.
5. The state might issue assessments based on previous income reported on your tax return and assess collection action in order to collect
the tax due.
Why should I hire a tax professional to help me with the unfiled tax returns?
1. The tax professional will speak to the IRS and confirm all the years that need to be filed, so you might never have to speak to the IRS
2. The tax professional will be able to order your past income documents to help prepare your tax returns.
3. The tax professional will be able to file your tax return with the maximum allowed deductions and credits allowed by law in order to
lower your liability owed or maximize your refund.
4. If you already have a balance due with the IRS, the tax professional may be able to incorporate the new IRS balances with your already
existing resolution plan with the IRS.
A tax resolution professional can give you the advice and guidance you need, from gathering the proper documents to filling out the necessary paperwork. If you are in tax trouble, reach out to our tax resolution firm. We will schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. Please call 1-855-605-1500 for a free consultation.