Unfiled Returns (Non-Filer)
We can file tax returns dating back to 2001. If you don’t have your W-2(s) or 1099(s), we can obtain the wage and income documents directly from the IRS for you.
Let us help you resolve any unfiled tax returns from previous years.
A non-filer is a taxpayer who has not submitted one or more tax returns, often spanning several years. Many non-filers may have multiple unfiled tax returns for various reasons.
One common reason is that the non-filer has never filed a tax return before and is unsure how to begin or fears that starting now will prompt the IRS to pursue them for previous years’ unfiled returns.
Another scenario is a taxpayer who has consistently filed in the past but missed a year and, fearing IRS action, continues to avoid filing in subsequent years.
Additionally, some taxpayers refrain from filing to avoid having their tax refund intercepted for child support, student loans, or other outstanding debts.
How the IRS Handles Unfiled Tax Returns
When an individual or business does not file a tax return, they may not realize that the IRS can file one on their behalf. Through the Substitute for Return Program, the IRS files a standard tax return for those who fail to submit their own. Unfortunately, this IRS-prepared return often results in the taxpayer owing money because it does not maximize deductions, expenses, and exemptions. Consequently, what could have been a refund might turn into a tax liability.
The consequences of not filing a tax return extend beyond potential tax debt. Benefits such as Social Security, Disability, and Medicaid are based on reported lifetime earnings. Similarly, state-sponsored programs like Unemployment Insurance rely on reported income. A non-filer might receive reduced unemployment benefits due to the absence of a completed tax return.
Failing to file a tax return is a criminal offense, and non-filers face significant financial risks. The IRS imposes fines and compounding interest on unpaid taxes, with penalties reaching up to 47.5 percent. Additionally, the IRS can pursue criminal and civil actions against non-filers.
Non-filers often face levies on outstanding tax amounts. If penalized, the IRS can seize funds from bank accounts and garnish future wages. Tax levies are common for non-filers, and many times, the penalized individuals do not actually owe the amount the IRS collects.
For expert help with unfiled tax returns, contact Tax Review Solutions for tax relief assistance.