Haven’t Filed Taxes in Years?
The IRS takes a harsh stance on unfiled tax returns. Accordingly, failing to file a tax return can lead to exorbitant penalties, and leaves you open to aggressively enforced collections. Over half of our clients have not filed taxes in years but we know how to guide then back to the “good graces” of the IRS.
Tip: even if you are unable to pay a tax liability at the time a tax filing is due, the tax return should still be filed on time, or as soon as possible. Filing your taxes helps minimize penalties associated with unfiled returns and is a legal requirement.
Unfiled tax returns trigger the collection process. Missing just one year can trigger for some, while others may miss several years before they are on the IRS’s radar. But the IRS always comes knocking eventually.
Substitute returns
Many people who haven’t filed taxes in years will get what is known as a Substitute For Return. This means the IRS (or state) essentially files your taxes for you with their best top-line guess for how much you made and how much you owe. This almost always substantially inflates the taxes owed because they are not giving you deductions that you would otherwise identify and itemize. To complicate matters, some states recognize substitute returns as final, and after a period of time do not allow you to file replacement returns with more accurate figures. This can result in the taxpayer being liable for more money than is actually owed and in no position to appeal.
Current and Future Filings
We can help you stay on top of your taxes so that you don’t fall behind or accrue penalties and interest – and the headaches – of missing filing taxes late. And of course, if you haven’t filed your taxes in years we can help with that too.
If you have tax returns that are past due and are uncertain what your next action should be, contact us today. We can give you accurate answers to complex questions.