What to Do If You Haven’t Filed Taxes in Years?
By Todd Whalen - March 12, 2020
What to Do if You Haven’t Filed Taxes in Years?
Why Is It Important to File an Annual Tax Return?
Do you have unfiled tax returns? Many people receive a tax refund but end up owing the Internal Revenue Service for unpaid taxes because of not filing a tax return. If this is you, don’t wait to file your return or you could risk being charged with a crime. The IRS does not forget about or overlook unfiled taxes and they will eventually catch up to you. If it’s been one year or several years since you filed a tax return, or if you’ve never filed, you need a tax return professional with the training, experience, and skills to handle your tax filing situation.
We only have three years to file a tax return and claim any refund that is due to us, but the Internal Revenue Service has 10 years to request an unfiled tax return. If you owe the government unpaid taxes, the IRS will assess a 5% penalty to your unpaid tax liability each month that it is not paid after the filing deadline and after 5 months (25%) the penalties continue at ½ of a percent. Any penalties that are being assessed for unfiled tax returns could be causing your tax debt to continue to grow larger every day.
What Can the IRS Do to Collect Back Taxes?
In many cases, the IRS can file a Substitute for Return (SFR) if you have not filed a tax return on your own for several years. They usually use the worst filing status possible for unfiled tax returns and do not allow exemptions for dependents, or apply for any available child credits. They can use an estimate of your gross business income, disallow any business expenses, and send you a huge bill that eventually becomes a legal debt. This can easily lead to enforcement of collection actions such as levies and liens that you are not prepared for or expecting.
When this action is taken the SFR does not take into account any deductions you may have been entitled to, so your best option would be to go back and protest these old returns that the IRS has filed so that your tax bill is accurate and you can take advantage of any deductions for which you qualify. The IRS takes filing annual tax returns very seriously, and usually, the penalty for failure to file is even higher than the penalty for failure to pay back taxes.
Are There Any Tax Payment Options Should You Consider?
Although the thought of being charged with a crime and having the IRS attach your wages and/ or drain your bank account is scary, there are ways to handle this scenario. When someone needs help with unfiled tax returns, many times there are large balances due. In cases like these, an Offer in Compromise can be the ideal resolution for many people. An Offer in Compromise means that the IRS will accept less money than is owed to settle the entire tax burden. There are specific rules you must follow to qualify for this solution. You are required to provide very detailed financial and personal information which is used to determine your ability to pay now and what they believe you can pay with an installment plan. There are many variables that factor into what the IRS will accept.
The Denver based tax professionals at Advanced Tax Solutions are here to help you work out this situation in your best interests. We understand the processes involved, how the IRS operates, and how they value income and assets. We offer professional Offer in Compromise tax services in Denver to help assure you get the best possible outcome.
Get the Help You Need Today
We understand that finding a solution to your tax problems caused by not filing a tax return can be an intricate process. Don’t try to negotiate your tax issues alone! Advanced Tax Solutions has years of experience in the area of helping people with unfiled tax returns. We will walk you through the process of filing old returns when you need someone you can trust. If you’re facing the daunting prospect of filing old tax returns, reach out to our team of tax professionals today.
Call us at our Denver office at (303) 753-6040 to schedule a free consultation for the help you need. Our goal is to help you put your tax problems far behind you. We keep our prices reasonable, so you can have one less financial burden to think about. Contact us today, and let’s get started.
Go Back Why Is It Important to File an Annual Tax Return?
Do you have unfiled tax returns? Many people receive a tax refund but end up owing the Internal Revenue Service for unpaid taxes because of not filing a tax return. If this is you, don’t wait to file your return or you could risk being charged with a crime. The IRS does not forget about or overlook unfiled taxes and they will eventually catch up to you. If it’s been one year or several years since you filed a tax return, or if you’ve never filed, you need a tax return professional with the training, experience, and skills to handle your tax filing situation.
We only have three years to file a tax return and claim any refund that is due to us, but the Internal Revenue Service has 10 years to request an unfiled tax return. If you owe the government unpaid taxes, the IRS will assess a 5% penalty to your unpaid tax liability each month that it is not paid after the filing deadline and after 5 months (25%) the penalties continue at ½ of a percent. Any penalties that are being assessed for unfiled tax returns could be causing your tax debt to continue to grow larger every day.
What Can the IRS Do to Collect Back Taxes?
In many cases, the IRS can file a Substitute for Return (SFR) if you have not filed a tax return on your own for several years. They usually use the worst filing status possible for unfiled tax returns and do not allow exemptions for dependents, or apply for any available child credits. They can use an estimate of your gross business income, disallow any business expenses, and send you a huge bill that eventually becomes a legal debt. This can easily lead to enforcement of collection actions such as levies and liens that you are not prepared for or expecting.
When this action is taken the SFR does not take into account any deductions you may have been entitled to, so your best option would be to go back and protest these old returns that the IRS has filed so that your tax bill is accurate and you can take advantage of any deductions for which you qualify. The IRS takes filing annual tax returns very seriously, and usually, the penalty for failure to file is even higher than the penalty for failure to pay back taxes.
Are There Any Tax Payment Options Should You Consider?
Although the thought of being charged with a crime and having the IRS attach your wages and/ or drain your bank account is scary, there are ways to handle this scenario. When someone needs help with unfiled tax returns, many times there are large balances due. In cases like these, an Offer in Compromise can be the ideal resolution for many people. An Offer in Compromise means that the IRS will accept less money than is owed to settle the entire tax burden. There are specific rules you must follow to qualify for this solution. You are required to provide very detailed financial and personal information which is used to determine your ability to pay now and what they believe you can pay with an installment plan. There are many variables that factor into what the IRS will accept.
The Denver based tax professionals at Advanced Tax Solutions are here to help you work out this situation in your best interests. We understand the processes involved, how the IRS operates, and how they value income and assets. We offer professional Offer in Compromise tax services in Denver to help assure you get the best possible outcome.
Get the Help You Need Today
We understand that finding a solution to your tax problems caused by not filing a tax return can be an intricate process. Don’t try to negotiate your tax issues alone! Advanced Tax Solutions has years of experience in the area of helping people with unfiled tax returns. We will walk you through the process of filing old returns when you need someone you can trust. If you’re facing the daunting prospect of filing old tax returns, reach out to our team of tax professionals today.
Call us at our Denver office at (303) 753-6040 to schedule a free consultation for the help you need. Our goal is to help you put your tax problems far behind you. We keep our prices reasonable, so you can have one less financial burden to think about. Contact us today, and let’s get started.
