Non-Filed Returns

There are a number of reasons why taxpayers don’t file their returns timely or perhaps not at all.  Sometimes, taxpayers just don’t think it’s important.  Others, know they need to file their returns and not filing their taxes creates a great deal of stress in their life, but either they’ve gotten behind and don’t know where to start, or they believe their IRS debt is substantial and don’t know how to resolve it.

The problem is that doing so, will compound your problems.  It is also getting more difficult to hide.  For the past several years, the IRS has built a massive computer database that allows them to both identify tax errors and identify non-filers.  The IRS estimates that there are 7 million non-filers in the country as of 2017, and has an  2019 initiative, to identify and locate those non-filers.  While not filing may have been easier in the past, it looks like it is about to get much more difficult.

The consequences of not filing are substantial.  There is a 5% per month penalty, with a maximum of 25% for filing late, and a .5% penalty per month, with a maximum of 25% for paying late.  These do not include interest.  While you may have thought that you had a problem if you filed, you could make it much more expensive by not filing.  In extreme cases, not filing your return may become a criminal offense.  Also ,if you don’t file your own return voluntarily, the IRS will file on your behalf with minimal deductions, which makes your tax bill higher than if you filed on your own.  Eventually you will face liens and/or levies and your life will become a nightmare.

The solution is to file your return voluntarily.  The IRS has a number of tax resolution alternatives to resolve your tax debt.  These include Installment Payments, Offers-In-Compromise (Settlement for less than the full amount of the debt), and being placed in Currently Uncollectible Status.  However, you must file your returns to qualify for most tax resolution alternatives.

If you have delinquent returns and are ready to move forward, then you’re in the right place to get some expert help with your tax problems.  Please feel free to call us at 972-821-1991 or email us at at no obligation to confidentially discuss your tax problem and how we can help.

Read Our Blog on Non-Filers to Learn More