Non-Filed Tax Returns
Did you know it is illegal to not file your tax return? Have you not filed your tax returns for the past few years? Did the IRS file the tax return for you?
Many Americans are unaware that it is illegal to not file an income tax return with the Internal Revenue Service (IRS). When a taxpayer doesn't file their tax return, the IRS can file a substitute for tax returns (SFR) on the taxpayer's behalf. The IRS has six years to file an SFR return if you fail to file your tax returns.
An SFR return can result in enormous tax obligations with the threat of collection activity such as bank levies, wage garnishments and federal tax liens being filed. For example, if you are self-employed with a 1099- Misc Income but due to unforeseeable circumstances, failed to file your tax return, the IRS will file a tax return on your behalf with no business deduction and no credits which you might otherwise be entitled to. It is in your best interest to file an original tax return and to be taxed on the income actually earned. Another drawback of not filing your tax returns is the penalties on the amount that the IRS has assessed can be charged interest based on the SFR return. The IRS can assess the individual with failure to file of up to 25%, failure to pay of up to 25% and interest on the balance owed. At Lifeback Tax, many of our clients’ debts consist of primarily interest and penalties.
Our experienced team of tax professionals at Lifeback Tax consists of tax attorneys, Certified Public Accountants (CPA), Enrolled Agents (EA), and Certified Tax Resolution Specialist (CTRS) who specialize in getting unfiled returns filed and filing over substitute returns. We work hard to make sure all of your balances are adjusted correctly and any pending credits are applied to your account!