Non-Filed Tax Returns
Did you know it is illegal to not file your tax return - Non-Filed Tax Returns? Have you not filed your tax returns for the past few years? Did the IRS file the tax return for you - Non-Filed Tax Returns?
Many Americans are unaware that non-filed tax returns with the Internal Revenue Service (IRS) are illegal.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.
What Happens if I Don’t File Taxes?
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 - non-filed tax returns, 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 off up to 25%, and interest on the balance owed. At Lifeback Tax, many of our clients’ debts consist of primarily interest and penalties.
How We Can Help With Non-Filed Tax Returns
Our experienced team of tax professionals at Lifeback Tax consists of tax attorneys, Certified Public Accountants (CPA), Enrolled Agents (EA), and Certified Tax Resolution Specialists (CTRS) who specialize in getting unfiled returns filed and filing over substitute returns - non-filed tax returns. We work hard to make sure all of your balances are adjusted correctly and any pending credits are applied to your account!
Non-Filed Tax Returns FAQs
Yes. Individuals who make under $12,200 per year and couples who file jointly and make under $24,000 are not required to file.
It depends. You may face penalties and interest.
An IRS “Verification of Non-filing Letter” is a form from the IRS that provides proof you did not file a return for the year in question.
It depends on your situation. For example:
• Individuals who make under $12,200 per year and couples who file jointly and make under $24,000 are not required to file.
• Individuals who make over that amount and do not file may be subject to various civil and criminal penalties.
Typically, there is not a penalty for failure to file if you are due for a refund. However, you do risk losing your refund if you do not file.
There is no time limit for the IRS to collect on unfiled taxes. This means that the 10 year statute of limitations does not apply if you do not file taxes. Technically, you can go your whole life without filing taxes but you are risking consequences including civil and criminal penalties.
If you don't file taxes and don't owe money, you should still file your taxes. You may be eligible for a tax return but if you fail to file, you will not receive it.
There is no time limit for the IRS to collect on unfiled taxes. Failure to file can result in exorbitant penalties and fees as well as possible jail time.