Missed Tax Returns? File Today

Missed Tax Returns Framingham MA

It is not difficult to fall behind on filing your taxes. This may happen due to several reasons, such as; 

  • Inability to afford any tax services.
  • You could forget about the filing tax deadline.
  • You may also have suffered a severe disease that left you incapacitated and hence unable to file your tax return. 

Most people are tempted to stop filing their tax returns and ignore any severe actions. However, this gets completely serious when the IRS starts sending you reminders of your unfilled tax or debt you have not paid. The IRS has a powerful ability to take stern action against you for failure to file. Therefore, it is essential to know the possible repercussions for failure to pay. 

Failure to pay is a crime

When you fail to file your tax returns, there are chances that you will get into serious trouble. The IRS considers this a crime and assumes you are intentionally evading the liability. They usually assess the debt on your behalf. The resulting consequences may mean a jail term for not filing your tax returns or fines or hefty fines amounting to up to $250,000. 

missed tax returns

The IRS can file a substitute return for you

This, however, is not a courtesy return for those who fail to submit their gains. Therefore, it does not include any deductions or exemptions. The IRS files a Substitute return, in place of the missed returns, when they notice the failure to do so. Filled SFRs may reflect a tax liability owed by the taxpayer. After that, the IRS sends out a detailed collection notice showing that an SFR was filed. They will seek to know if there exists a tax balance that is associated with the SFR.

No timeline for IRS action

The IRS has no time limit within which they can enforce their collection action When they asses the balance that is due for collection from you. When IRS analyzes and finds a balance against your account, they can take your wages; charge the bank accounts, where the need arises, they place notices on your physical assets. Do not let time pass by, regardless of time-lapse IRS never loses track of the debt. It gives them more right to ask for the accumulated amount.

Benefits of filing your missing tax return

When the IRS takes collection procedures against you it is not easy; therefore, you should submit your tax return. Although you are not bound by a time limit to file returns for any past tax years, the IRS limits receiving refunds for previous tax returns. The IRS allows you collection on a tax refund for up to three years from your returns the due date.

Filing the tax returns is not one of the exciting things to do. Some people even dread the activity every year. Regardless of your feelings about filing your returns, always remember it is a requirement. You also need to remain compliant and out of the collections list with the IRS. When you have unfiled tax years, consider it beneficial to speak to a tax attorney or any tax resolution organization. These enable you to resolve all outstanding debts, that you may have for all the unfiled years or all the tax debt assessed on you after the IRS filed an SFR. 

Learn More

Contact Ash CPA to learn more about filing missed tax returns. Call (617) 462-6651 or book an appointment online.