Unfiled Tax Returns

There are several reasons why an individual does not file their tax return:

1. They owe more than they can pay

2. Illness in the family 

3. Unanticipated events that prevent filing

4. Procrastination

If you owe money to the IRS and do not file on time you might find yourself owing much more than your original bill. Keep in mind, THE PENALTY TO NOT FILE IS GENERALLY LARGER THAN THE PENALTY OF NOT PAYING! Even if you can not pay all that is owed file your return and contact the IRS or a certified tax professional to find out what your payment options are. For more information see Filed and Have a Tax Debt. 

If you have additional questions you can always visit your local IRS office, remember to organize your tax return information first. You may also contact taxdebtguide.org directly to obtain the contact information of an authorized tax professional in your area.

You May Lose Your Refund If You Do Not File on Time

For example, if you are due a refund for withholding or estimated taxes paid you must claim it within 3 years of the return due date or you risk losing it. The same rule applies on your right to claim a tax credit such as the earned income credit. If you are self-employed, you will not receive credit toward social security retirement or disability benefits if you do not file. The IRS may also delay a refund owed to you for the current if you have not filed for a previous year. 

Substitute Return Filing

If you do not file a tax return the IRS may file a substitute tax return for you. This return may not include all exemptions, credits, or deductions to which you are entitled. If you owed taxes and the IRS files a substitute return for you, your tax debt will likely be larger than necessary. Reminder, if you do not file you will receive a bill and it will include failure to file and failure to pay penalties plus interest in addition to the tax debt due. 

You have the right to contest the substitute return. But to do so you must file the original return with the IRS where it will be reviewed and any adjustments to be made will be determined. You will likely be asked to provide supporting documentation to justify any requested changes. The IRS does not what to prosecute ordinarily taxpayers who merely made an honest tax mistake. What the IRS really wants is the taxpayer back in the IRS tax paying system. 

Criminal Investigation

Receiving a letter from the IRS does not mean you are under criminal investigation; however, it does mean you need to act now! File your tax return or contact a tax professional before the tax debt problem unnecessarily worsens. The IRS cares about you making an honest effort to file taxes when they are due. Taxdebtguide.org can assist, do not hesitate in contacting our team directly to locate a tax professional that will assist you in exercising your rights.