The first of your concerns is an IRS failure to file penalty: as of 2017, this fine is normally assessed at 5% of the amount due on your unpaid taxes for each month or portion of a month your taxes remain unfilled.
UNFILED TAX RETURNS
If you have an unfiled tax return and owe the IRS money, you’ll also face the failure to pay penalty: generally 0.5% per month of unpaid taxes, with a minimum fine of $135.
As the interest and fees continue to pile up on your unfiled taxes from prior years, you’ll soon find yourself with mounting tax debt and in need of unfiled taxes to help settle your outstanding obligation.4
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Can I Face Criminal Charges for Unfiled Taxes?
In some cases, yes. The IRS is unlikely to prosecute a taxpayer who filed late, can’t afford to pay their tax bill, or accidentally reported misinformation. However, if you don’t file your taxes despite knowing an obligation to do so, you could be guilty of tax evasion—a criminal offense punishable by law. The punishment will vary depending on the severity of your crime, but in almost all cases someone charged with tax evasion will require a tax advocate or tax attorney to represent them before a court.
What if the IRS Owes Me Money?
If you’re owed a return due to eligible tax credits or from withholding extra allowances on your Form W-2, an unfiled tax return could cause you to lose out on any money heading your way. If you leave your taxes unfiled, the IRS will likely just keep your scheduled return—which benefits them but works against your favor, especially if you were expecting to see a large return. As of 2017, the IRS states that you have up to three years to request a former return, so be sure to settle your unfiled tax returns as soon as possible.
I Have Unfiled Tax Returns But Haven’t Heard from the IRS — Am I Okay?
No, just because the IRS has not contacted you regarding your unfiled taxes does not mean you’re not on their radar. April is the busy tax season, but IRS officers have all year long to review unfiled tax returns. Just because they’re prioritizing the big fish doesn’t mean they won’t also go after the small guys, too. You might not have filed an income tax return for years, only to one day suddenly receive a notice stating your shockingly high tax debt and finding yourself in desperate need of unfiled tax return help. This is because the IRS technically has an unrestricted amount of time to investigate your account for as long as you fail to file. The good news is that once you do correct your outstanding taxes, you start the clock on the unfiled tax return statute of limitations.
The IRS statute of limitations states that generally speaking, the government has up to ten years to collect on a debt for your unfiled tax return. If you’ve been sitting on back taxes for years, the time frame constraining the IRS has not yet started, giving them an endless amount of time to sit on your case. File your taxes immediately to start the window of unfiled tax return statute of limitations and narrow the timeframe the government has to collect on you.
GET TAX RELIEF HELP TODAY
If you think that you may need help filing your 2018/2019 tax return or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.
Advance Tax Relief is headquartered in Houston, TX with a branch office in Los Angeles, CA. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.
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