Late or Unfiled IRS Tax Returns
Late or Unfiled IRS Tax Returns
Have you missed the due date for your taxes? Have you forgotten to file your taxes?
Now the IRS is sending you “not received” notices or even summoning you for an audit. Until these late or unfiled IRS tax returns are taken care of, you may be unable to collect the money from your tax returns or the IRS may go ahead and create a return for you with no deductions at all. Even worse, a late or unfiled tax return is a misdemeanor with penalties of up to $25,000 per year in late filing penalties and a year in jail!
The good news is it’s not too late to file your tax return and get back the money you may be owed. There is a 3 year statute of limitations on tax returns and, with our help, your late or unfiled IRS tax returns can be filed. We will help you expedite the process by working with the tax authority on your behalf while also offering you protection from collection threats.
Need help now? Don’t wait. Contact us today for your free consultation.
Frequently Asked Questions About Late or Unfiled Tax Returns (FAQ)
What can the IRS do to collect late or unfiled IRS tax returns?
The IRS can do many things, they are the largest collection agency on earth. They can levy your bank accounts, garnish your wages, file tax liens against your home and property, they can seize your home or business, they can summons you to appear in front of them, they can sue you in a civil court and get a judgement against you. And finally if the situation is severe enough they will charge you criminally and put you in jail.
What is the first step that the IRS will take for late or unfiled IRS taxes returns?
If you file a tax return with a balance owing and it remains unpaid the IRS will mail out notice CP14 giving you 21 days to pay.
Is there Interest on late or unfiled IRS tax returns?
Yes, interest accrues on unpaid taxes, the current rate is 5%.
How long before the IRS will take action if I have late or unfiled IRS tax returns?
If you have unfiled tax returns the IRS will usually send letters requesting that you file. If you fail to respond the IRS will then search their database for income reported to them by payers under your SSN, once located they will then create and file a tax return on your behalf with zero deductions and using the maximum tax rates, this is known as a substitute for return, or SFR. Once this tax is assessed the IRS will then begin enforced collection actions.
If you have unfiled or late taxes due, and you have not contacted the IRS to make payment arrangements, the IRS will begin sending threatening letters which eventually will lead to phone calls and possibly even assignment of your case to a local Revenue Officer.
If I can’t pay my income tax, should I still file my late or unfiled IRS tax returns?
Yes, filing a tax return on time will avoid the late filing penalty of 25% of the tax due.
What is the Fresh Start program with the IRS?
The fresh start program was initiated back in 2012 by the IRS shortly after the economic downturn, realizing that many people were suffering due to the changing economy, the fresh start program three important things, first it liberalized the rules and requirements for making a settlement with the IRS under the Offer in Compromise program so that more people would qualify.
Second it also expanded the definition of “streamlined installment agreements” raising the threshold so that it was easier to get a payment plan without the burdensome financial reporting requirements.
And third, it raised the ceiling for when the IRS is required to file a tax lien against a taxpayer.
What is the penalty for late or unfiled IRS tax returns?
Late filing penalty is 22.5% of IRS unpaid tax, the late payment penalty accrues at .5 % per month capping out at 25% of the unpaid tax. There are also negligence and fraud penalties at 20% and 75% of the unpaid tax.
Can I go to jail if I owe the IRS late or unfiled IRS tax returns?
Yes, if the IRS charges you criminally you can go to jail. Al Capone was sentenced to jail for tax evasion. Many high profiled people have gone to jail over the years.
How do I find out how much I owe the IRS for my late or unfiled IRS tax returns?
You can call the IRS or you can order account transcripts from the IRS website and/or IRS.gov.
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“Franskoviak Tax Solutions is the best CPA firm I have ever used. They are responsive, solution orientated and innovative. The care and personal touch I received with my tax issue took the stress off. I felt hopeful with the real solutions and game plan that Mike and his team put together. They have the service like a large firm, but the personal touch of a small business. Franskoviak Tax Solutions set me up with an LLC that will save me money in taxes for the upcoming year. They also negotiated with the IRS to make my past tax liability manageable. Mike and his team have made my wife’s and I’s lives feel hopeful with less stress.”
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