Unfiled Tax Returns & Tax Resolution
Years of unfiled tax returns can create uncertainty, IRS notices and growing tax problems. Filing compliance is also commonly an important part of resolving existing IRS or state tax debt. National Taxor helps taxpayers understand the steps needed to bring delinquent tax matters toward compliance and resolution.
What Happens When Tax Returns Are Not Filed?
The IRS may continue collection activity on assessed balances and, in some circumstances, may prepare a substitute return using information available to the government. A substitute return may not reflect deductions, credits or other information that would have appeared on a properly prepared taxpayer-filed return.
How Many Years Need to Be Filed?
The answer depends on the taxpayer’s facts and current IRS requirements. Rather than automatically preparing every historical year, the appropriate filing requirements should be identified as part of the compliance review.
Unfiled Returns and IRS Tax Debt
Taxpayers seeking an installment agreement, Offer in Compromise or another long-term resolution generally need to address filing compliance. Once required returns are filed and the actual balances are known, available collection alternatives can be evaluated more accurately.
Getting Back Into Tax Compliance
National Taxor can help organize the resolution process when unfiled returns are part of an active tax problem. This may include identifying missing years, reviewing notices and account information, coordinating required compliance work and then evaluating the remaining tax debt.
Have Multiple Years of Unfiled Returns?
Start by determining what is actually required and how the missing returns affect your overall tax-resolution case.