Unfiled Returns – What You Need to Know
- If you do not file a return, the IRS will file a return for you. In doing so, they will make a tax and then try to collect that tax.
- If you do not have records to file returns, you can retrieve your income records directly from the IRS. This includes W-2 and 1099 information. With this information, it is important to prepare returns as quickly as possible even if other additional information is not available.
- If you call the IRS, they will usually suspend collection activity for awhile to give you a chance to prepare the missing or unfiled returns.
- Just because returns are file late, it does not mean that there is a greater chance of being audited. The information contained on the tax return is the primary factor for audits than when the tax return is filed
- It is unlikely that the IRS will consider criminal action for unfiled returns. Nearly 10% of the taxpaying population has unfiled returns. Unless you have had very, very large income or income from illegal sources, it is unlikely criminal charges will occur.
- If a tax is due after the missing and unfiled returns are filed, then an Offer in Compromise and/or installment arrangement can be entered into.
If You Need Help Handling Your Unfiled Returns
Call (800) 934-3578 for a free, no-obligation consultation with a tax lawyer, or fill out the contact form on the upper right side of this page.