Tax Law:

Unfiled Tax Returns

The IRS approximates that nearly ten million people fail to file their federal income tax returns every year. There are a number of reasons taxpayers do not file their tax returns. For instance, some people will wait until the deadline has passed, while others simply do not understand the filing process. In limited instances, the taxpayer will knowingly fail to file their tax return in an attempt to avoid their duty to report their income and pay their taxes.

“Non-filers” is the term the IRS uses to describe individuals who fail to file their federal income tax returns. In many cases, non-filers can successfully resolve their issues with the IRS by obtaining the assistance of a tax attorney and voluntarily addressing their failure to file. Continuing to avoid one’s tax liability can result in serious consequences, including criminal tax prosecution.

If you have not filed your federal income tax return, help is available. Our tax attorneys are well-versed in tax law and have extensive experience successfully resolving issues with the IRS. To speak to a tax lawyer about your unfiled tax returns, fill out our free, no obligation case review form on the right.

Voluntary Compliance

Typically, if a taxpayer admits to their tax problem before the IRS launches a criminal investigation, they can use the “voluntary disclosure” policy to file their missing returns and avoid prosecution. However, the voluntary disclosure program requires the taxpayer to be fully honest when filing their missing tax returns. Should the IRS find that the late returns are inaccurate, the taxpayer’s chances of being criminally prosecuted greatly increase. Because of this, those filing delinquent returns are advised to contact a tax attorney who can help ensure the return is filed in a careful but efficient manner.

Enforced Compliance

When the IRS identifies a non-filer, it will send a series of notices requesting that the returns be filed. Typically, four notices will be sent to the non-filer before the IRS makes contact via telephone or in person. If the taxpayer fails to respond to these notices, the IRS will use a number of methods to force compliance. For instance, the IRS may prepare its own tax return for the taxpayer based on a number of documents, contact the taxpayer through telephone contact, or hand the case over to an IRS officer for field investigation.

Tax Attorneys for Non-Filers

The IRS has recently increased its budget for technology that will help identify and track down non-filers and has placed finding individuals who fail to file their tax returns at the forefront of its agenda. If you have not filed your tax returns, there are a number of methods the IRS can use to identify you as a non-filer. For instance, the IRS has computer software that can match third party income and expense data with filed tax returns, or lack thereof. If you have failed to file your federal income tax returns and have yet to be discovered by the IRS, it’s important that you take action immediately to avoid criminal prosecution. Fill out our free case review form today and a tax attorney will evaluate your situation to determine if he or she can help you favorably settle your non-filing issues with the IRS.