Delinquent Tax Returns

The IRS has a program called the Substitute for Return Program where they file tax returns for taxpayers who do not file. Credits abd deductions will not be factored for when the IRS file the return themselves.

The consequence of not filing a tax return is incomparable to the amount owed to the IRS. Your Social Security, Disability and Medicare benefits are all based on the income reported on your tax returns over the course of your lifetime. Some state-sponsored benefits like Industrial Insurance and Unemployment Compensation are based on income that is reported, so taxpayers may not receive full benefits because a tax return was not filed. Similarly, in some states, a taxpayer who has been ignoring filing tax returns during the previous years might not be able to complete vehicle registrations or renew professional licenses.

It is important to remember that not filing a tax return is a crime. Most taxpayers who have not filed a tax return are primarily at financial risk because the IRS imposes penalties and interest to the tax debt owed. The penalty and interest can reach up to 47.5%. Additionally, the IRS may seize their bank accounts, garnish their wages, impose a lien and/or levy their personal assets.

We are here to help you navigate this situation.

If you have problems filing your taxes, Call Us today.