The Reality of Unfiled Tax Returns

It is not uncommon for individuals to skip filing their tax returns for a year or more, often due to financial difficulties. However, the IRS is generally more understanding if you file your taxes, even if you are unable to pay the full amount. The best course of action is to file your returns, get current, and explore tax relief programs for which you may qualify. Emerald Gain has assisted numerous taxpayers in filing their unfiled tax returns and regaining financial stability.

What Happens If You Don’t File Tax Returns?

Penalties

Late filing penalties will be imposed, along with monthly late payment penalties. Furthermore, interest will accumulate on any unpaid taxes.

Refund Delay

If you have unfiled tax returns from previous years but file your current year’s return, the IRS may delay your refund.

Reduced Refund

The IRS may file a substitute return on your behalf, resulting in a reduced or eliminated refund.

Forfeited Refund

You have a three-year window to file late tax returns. Failing to meet this deadline will result in the forfeiture of any due refund.

Criminal Charges

Refusing to file a tax return is a criminal offense, carrying a potential prison sentence of up to one year per year of non-filing (up to a maximum of five years).

How to Catch Up on Unfiled Tax Returns

If you want to alleviate concerns about unfiled tax returns and their consequences, getting back on track is straightforward with the assistance of the Emerald Gain. We will assess your situation and guide you towards the best path forward. Several options are available, including:

Extension Request

If you are unable to file this year’s taxes on time, you can request a filing extension to gain additional time. However, any taxes owed must still be paid by the original tax deadline. If full payment is not possible, an IRS payment plan can be arranged.

SFR Reconsideration

If the IRS has filed a substitute return (SFR) on your behalf due to unfiled tax returns, you can submit a late return for reconsideration. This is an option worth considering if you disagree with the adjustments made by the IRS on your SFR.

Penalty Relief

In certain circumstances, you may be eligible for penalty relief, wherein your filing and payment penalties can be waived through a first-time abatement request or due to reasonable cause. This relief is available if you have encountered unforeseen circumstances that prevented timely filing.

Offer In Compromise

If you are unable to make any payments towards your tax debt, the IRS may accept a smaller amount through an offer in compromise. To qualify, you must demonstrate financial hardship and an inability to fulfill the requested payments. This approach can be an effective means of catching up and reconciling with the IRS.

Choose Emerald Gain for Tax Assistance

When you find yourself in debt to the IRS, Emerald Gain is your trusted partner. With an impeccable A+ rating from the Better Business Bureau and authorized business operations across all fifty states, we offer reliable and confident assistance. Our team of skilled tax professionals possesses extensive experience in resolving various tax issues and adeptly navigating interactions with the IRS on behalf of our clients.