Almost all working adults, as well as many who are retired, must file a tax return each year. However we know there are many cases where this might be misunderstood, where filing was not possible at the time, or instances where taxpayers chose not to file because they could not pay a tax debt. There are a variety of other reasons for unfiled tax returns or taxes filed late. It is important to understand that though there are options available for fixing this problem, problems with unfiled tax returns do not simply go away on their own. If you have years of unfiled tax returns, late tax returns, or returns that were not properly filed, you have probably already encountered problems. We can help you solve them.
Yes. Just because you haven’t yet received a notice about your unfiled returns doesn’t mean the IRS is unaware. Many people think they should “wait it out,” hoping the IRS won’t notice, but this is not a good idea. If you do not address your unfiled returns, the IRS will figure out what you owe for you, and then deliver their conclusions. In fact, the IRS can legally file your taxes for you if you don’t, and this will create the largest tax debt possible. It is better to file your returns late, make the calculations yourself, and address the problem right away. Waiting for a notice from the IRS might mean waiting for a lien or levy, which is a much more complicated situation than filing an unfiled return.
The rule of thumb for keeping records and filing late returns is three years. However this three-year role does not apply to unfiled returns. If you have unfiled returns, give us a call to determine the best course of action. If you wait for an IRS notice, this will likely appear in the form of a lien or levy (seizure) of your bank accounts or property.
If unfiled tax returns are hanging over your head, the best course of action to take is filing. We will help you arrange the proper documents, file past returns, and reduce your tax debt as much as possible. Strategies are available to help you reduce your tax debt, but most of these cannot be used if you have unfiled taxes. If you owe a significant tax debt from delinquent returns, misfiling, or taxes simply not paid, this is a good starting point to resolve it. If you address your outstanding debt before the IRS takes action, you will not be caught off-guard by liens or levies, and you will have a better negotiating position.