Frequently there are taxpayers that do not file individual or business tax returns for one or more years for various reasons. Missing all or a portion of their records and documents, personal or financial hardship and/or neglect are one of many reasons to fall behind.

Direct Tax Relief (“DTR”) can prepare past returns using various substitute sources when there are missing records. Those returns should be filed as soon as possible in order to avoid accumulated compounding interest and large penalties.  You should also be aware that if returns have not been filed in the most recent three tax years, those returns should be prepared immediately in order to claim any refunds that may be due.

Not filing a tax return is far worse than filing a tax return and not being able to pay the tax amount owed. If you file a tax return but cannot pay, DTR has many tax solutions to help you pay the tax amount owed. If you do not file a tax return it is considered a crime and you can be punished for it. Not filing a tax return can result in fine up to a $25,000 and a 1 year prison sentence for each unfiled tax year. Recently, the actor Wesley Snipes was convicted of failure to file tax returns for 3 years and sentenced to 3 years in prison.

Call today at (877) 505-4829 for a FREE Tax Resolution Analysis.

Consequences of Not Filing a Tax Return

• Penalties. The IRS will impose a "failure to file" penalty, as well as other penalties such as “penalty for late payment of tax”.  A delay will result in a penalty as well as interest charges. The longer you wait to file your tax return the more money you are going to be charged in penalties. Your bill could increase by as much as 25-30% if you continue to delay.


• Substitute for Return .  The IRS will file a substitute return for you. This return is based only on information the IRS has from other sources. Thus, if the IRS prepares this substitute return, it will not include any additional exemptions you may be entitled to.  The return will not include and personal or business deductions and may overstate your real tax liability.


• Loss of refund. There is nothing worse than losing your tax refund to the IRS, but this is a very real possibility if you do not file a tax return.  You cannot receive a refund without filing a return. In most cases, you have three years to file a tax return and receive a refund. After that, the IRS is not entitled to pay you.


• Statutes of limitation. It is important to note that the statute of limitations for the IRS to collect owed taxes does not start until a return is filed. The sooner you file your return, the sooner the statute of limitations will start running.

Many non-filers believe that they are off the hook because they are not contacted by the IRS within a year or two, but this is normal.  The time lag is usually about 1-2 years before the IRS starts contacting taxpayers for un-filed returns. Don't forget that penalties and interest are adding up during the time the returns go un-filed.

The IRS will contact you by letter or telephone requesting that you file your return(s) within a 30 day period. You may also be visited by an IRS agent; that will request you file the return(s) directly with him or her.  Taxpayers that are being represented by DTR can politely let the agent know you have representation and our Tax Attorney will contact the agent on your behalf. 
The IRS can also file the tax returns for you, which they can legally do and they WILL NOT give you the benefit of the doubt on anything (deductions). If you are visited by a criminal investigator for your unfiled taxes, it is possible that your case may be referred to Criminal Investigation (“CI”). 

Make sure you have an experienced and knowledgeable Tax Attorney on your side that will fight for your rights! 

Our Tax Attorneys can have a collection hold placed on your account to allow us time to retrieve your account transcripts in order to analyze your case and prepare your delinquent personal or business tax returns.  Once your returns are prepared by DTR, there are many solutions available to resolve your outstanding balance owed to the IRS.  These services include an Offer in Compromise, Penalty Abatement, or Installment Agreement.

Call today at (877) 505-4829 for a FREE Tax Resolution Analysis.