Brown, PC Brown, PC Tax Practice Group 888.870.0025
Call for an initial consultation
Call 888.870.0025

If your taxes are past due, should you still file?

Tax-filing season for this year still has a couple of months ago. But what if you still have not filed taxes for previous years?

In this post, we will explain how important it is to put a plan in place to address past-due federal taxes.

One possible consequence of not filing on time is a non-filer investigation by the Criminal Investigation (CI) division of the IRS.

But even when there are no allegations of tax evasion, the penalties and interest charges for unpaid taxes are significant. When you don’t file, you also open yourself up to collection actions by the IRS, such as liens against your property or garnishment of your wages.

The IRS may take such actions after filing something called a substitute return. As we explained in our article on past-due tax returns, can use a substitute filed return (SFR) to estimate the tax liability of a non-filer.

When the IRS prepares a substitute return, however, it does not always give you the benefit of the doubt on tax deductions, credits or deductions you may be eligible for. This means that the SFR may show a higher tax liability than you would have had if you had filed your own corrected return

In short, there are numerous reasons why a filing past-due return is generally a sensible step for a taxpayer who missed the original filing deadline. Indeed, in some cases it may even be possible to claim a refund.

Of course, in some cases it will be necessary to pay considerable amounts in back taxes. But it may be possible to resolve that debt by working out an offer in compromise (OIC) or an installment agreement with the IRS.

No Comments

Leave a comment
Comment Information
Print this Page
Email Us For A Response

Request A Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Information

Brown, PC
500 Main Street
Suite 400
Fort Worth, TX 76102

Phone: 817-870-0025
Fax: 817-870-0515
Map & Directions