Unfiled Tax

Unfiled Tax Returns

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The IRS estimates that each year approximately ten million people fail to file their federal income tax returns.

The reasons that taxpayers fail to file their tax returns are varied; some taxpayers simply procrastinate; others don’t understand their filing requirement; and in a few cases, taxpayers willfully fail to file in an attempt to evade their responsibility to report their income and pay their tax liability.

The IRS uses the same term to describe all of these taxpayers, “Non-filers.” In most instances, the problems faced by Non-filers can be resolved successfully if the taxpayer obtains experienced legal counsel and voluntarily addresses the problem.

On the other hand, the continuing failure of a taxpayer to voluntarily comply with tax return filing and to obtain experienced legal counsel can result in severe consequences. In some cases, a taxpayer may even suffer a criminal tax prosecution

For many years, the IRS lacked the budget and the ability to identify and find habitual non-filers. However, the IRS has substantially increased its budget for technology that will enable it to find and pursue taxpayers who fail to regularly file their returns.

The IRS has targeted the problem of non-filers as one of its highest priorities. The IRS has developed and continues to improve sophisticated computer matching software programs designed to identify and locate these taxpayers.

IRS computer capabilities are constantly being improved to enable the IRS to match third party income and expense information to returns (or the lack thereof) of taxpayers, and the IRS is becoming increasingly adept at identifying and locating non-filers.

If you have not filed all required tax returns, and have not yet been discovered by the IRS, the time to act is now. If you fail to act now, the IRS is almost certain to knock on your door in the future. It is a misdemeanor to willfully fail to file your tax return. This could lead to a one-year maximum sentence. If charged with the felony of tax evasion, you may face five years of imprisonment. It is not worth taking that chance.

Take The Necessary First Steps

Before anything can be done to extricate you from your tax woes, you must file all the returns that are overdue. No CPA can help you unless you’re willing to file. You simply must get caught up; that’s the first step toward resolving your tax issues. If you voluntarily file your delinquent returns, you’ll likely avoid harsher penalties, other than having to pay the standard interest and penalties.

An expert tax accountant in the Greensboro NC and Charlotte metropolitan area, like those at Mildrid Esua, CPA, can do the work to complete your non-filed tax returns quickly, assuming you have the necessary financial statements and information. During this process, your personal CPAs give you all the deductions you’re entitled to so that your return favors you as much as possible. Preparing your taxes goes a long way to diminishing how much you’ll owe in the end.