What to Expect When You Have Unfiled Tax Returns

So you have unfiled tax returns.  Maybe you didn’t get around to it, and the next year you didn’t do it either, and the years of unfiled tax returns piled up you worried about it less and less.

Here’s what you can expect when you have unfiled tax returns:

Long Time Coming

You will probably receive a notice within a few months of the deadline of the unfiled tax returns, but the IRS won’t do anything for a while–several years, even.  Is that because they’re behind, or because they’re waiting for the three years you have to claim a refund to expire, or because they want to stretch out the collection statute as long as they can, or because they like to max out your failure to file penalties and failure to pay penalties before filing?  We don’t pretend to know.  What we do know is that the IRS will eventually replace your unfiled tax returns with ones they file themselves.  These returns will be much less favorable to you than the one you would have filed for yourself.  Then they will begin collecting your money whether you like it or not.

We won’t try to scare you into “doing the right thing.”  While we will only advise clients to file their taxes on time and pay the balance in full each year, it is a fact that some people with unfiled tax returns get away with not filing them ever.  Most of the time, the IRS leaves these people alone because . . . THEY WOULD HAVE RECEIVED REFUNDS!  That’s right, the IRS isn’t going to bother you about those unfiled tax returns  if they know they will owe you money.

As you can see, unfiled tax returns are a self-imposed problem and there’s no reason to let the problem fester any longer.

If you have unfiled tax returns, call us today to set up an appointment to speak with a professional. We’ll get those unfiled tax returns filed ASAP.  Kansas City Tax Mediation:  Let’s get through this together.

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