Unfiled tax returns can lead to owing more when eventually submitted, and may create additional challenges, especially if multiple years are involved. Causes include missing records, hardships, or negligence. However, there are solutions available for resolving unfiled tax returns.
Get IRS Tax Relief Fast!
You create big tax problems when you are one of the many IRS non-filers and have unfiled tax returns (don’t submit your income tax returns to the IRS).
Others believe that you need a tax lawyer to handle your back taxes, but a tax expert like Mildrid Esua CPA can help you file your taxes late. IRS statute of limitations on unfiled tax returns
If you have unfiled federal tax returns, the IRS can pursue taxes, penalties, and interest indefinitely until you file. After you file, the IRS has 10 years to collect what you owe.
If You Do Not File Voluntarily a Substitute Return can be Filed
If you’re a non-filer, the IRS may file a substitute return using your reported income. Not filing can result in penalties and interest on unpaid taxes.
Collection and Enforcement Actions for Non-Filers
If the IRS prepares a return on your behalf (proposed assessment), it will result in a tax liability. Failure to pay may initiate collection actions, such as wage or bank account levies, or the filing of a federal tax line. Continued noncompliance may lead to further enforcement efforts, including additional penalties and potential criminal prosecution.
Understanding Unfiled Tax Returns
A non-filer is a taxpayer who fails to submit tax returns. This offense can result in criminal charges, with fines up to $25,000 for individuals and $100,000 for corporations, and possible imprisonment. The IRS may delay enforcement, but non-filers are always at risk.