Having unfiled tax returns with a balance due can lead to some of the harshest tax penalties that the IRS and states issue. Even if no taxes were due, a failure to file a tax return can result in a loss of a tax refund.
Over the past few years the IRS and States have really stepped up their technology to catch people with unfiled tax returns. It no longer is a question of if taxation authorities will find out; it is when they will find out. If taxes are owed, tax penalties and interest will continue to accrue from the date that they were due. Even if the IRS or State has not notified you of an unfiled return, it is in your best interest to file as soon as possible to avoid potential penalties and interest. Even if you are owed a refund, file as soon as possible because you could be earning interest on that money, paying down debts or putting it to use in some other way.
How Our Unfiled Tax Return Service Works
No matter how many years of unfiled tax returns you have, we can get them all filed for you through our qualified tax preparation team. The first step to getting back into compliance with your taxes is to quickly get your tax returns filed while maximizing credits and deductions that you qualify for.
If you have not filed your taxes in years, there is a good chance the IRS and State will file a tax return on your behalf in order to assess taxes owed and begin the collection process. The Substitute for Return (SFR) will give only basic deductions and will likely leave out many deductions and credits that you are actually entitled to. Our tax professionals will file an original return based off of information you provide and/or income information obtained from the IRS, and ensure you receive all of the proper credits and deductions that you are entitled, likely reducing your overall tax liability.
Situation 1: Unfiled Returns, Owe Money & Can’t Pay
If you have unfiled returns and you can’t pay the taxes that are due after you file, we can file your tax returns and then work out a resolution for the taxes you owe. Everyone’s tax and financial situation is different and our tax team can analyze your situation to make a determination of the best tax settlement method to use. Below are some of the resolutions our team will consider:
- Offer in Compromise: This is a program is for struggling taxpayers who have a small likelihood of ever paying off the taxes they owe. The IRS looks at a taxpayer’s reasonable collection potential when determining whether to accept an Offer in Compromise. Under this resolution method, a taxpayer can settle their taxes for less than the total amount owed.
- Installment Agreement: If you can afford a monthly payment with the IRS or State, then we can set you up with a payment plan. Once you are entered into this type of agreement, you are considered to be in tax compliance and the IRS and some states will lower the failure to pay penalty by 50%. Furthermore, once you have successful made consecutive monthly payments, we may also consider for penalty abatement (discussed below).
- Partial Payment Installment Agreement: Allows taxpayers to pay a smaller monthly payment towards their taxes owed. Many times the statute of limitations on the debt expires before the total amount of debt is paid off.
- Currently Not Collectible: This puts a hold on tax collection activities. If a taxpayer does not have enough funds to make payments towards the debt the taxing authorities will wait until their financial situation improves before collecting. In many cases, the statute of limitations or the collection statute of expiration (CSED) on the tax debt expires before the taxes are fully paid off.
- Penalty Abatement: This option is considered in conjunction with all other resolution methods. Penalties can be removed if the taxpayer has a “reasonable cause” for not staying in compliance with the tax laws.
Situation 2: Unfiled Returns, Owe Money & Can Pay or Owed a Refund
If you have failed to file a tax return, our experienced tax preparers (CPAs and Enrolled Agents) will prepare your returns and maximize your credits and deductions to minimize the taxes you owe or to maximize the refund you receive. If you owe penalties and interest, we will assess your situation to determine if you qualify for penalty abatement in order to lower the total amount of taxes owed.
If you have not filed your taxes in years, there is a good chance the IRS and State will file a tax return on your behalf in order to assess a tax amount owed in order to start collections. The SFR will give only basic deductions and will likely leave out many deductions and credits that you are actually entitled to. Our tax professionals will file an original return based off of information you provide and/or income information obtained from the IRS, and ensure you receive all of the proper credits and deductions that you are entitled, likely reducing your overall tax liability.
Why Choose Us to File Your Past Due Tax Returns
We have a team of experienced tax preparers and experienced tax resolution professionals that will work together to get the best possible outcome for your situation.
Need a tax preparer to use year after year? We make it easy for you to send over all of your documents electronically with no face to face meetings required. Our tax preparation fees are comparable to other well-known tax preparation companies, but our tax preparers work year round on preparing taxes instead of just through the busy tax season.