Penalty for Late Filing Income Tax Returns
  • August 3, 2022
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Filing your taxes on time is always important to avoid getting into any kind of trouble with the IRS. While this is the most ideal scenario, there are times when taxpayers find themselves filing late, sometimes even for several tax years. If you find yourselves in a situation whereby you are filing late or haven’t filed in a few years, it is important to know how to proceed. Working with a proven Dallas IRS attorney is the best way to get everything right as there are quite a few debt relief avenues such as IRS offers in compromise, IRS penalty abatement, and IRS tax installment agreement.

What are Late Taxes?

In the absence of an extension, all taxes that are filed past the deadline are considered as ‘late taxes.’ The IRS handles late filing cases differently depending on the length of time the taxpayer has gone without filing, the amount of taxes they owe, and the ability to pay the outstanding amount. What remains clear is what happens if you don’t take action to file your taxes, as you will most likely become the subject of a penalty for filing taxes late; fees, interest, and liens. While the IRS may sometimes take a while to pursue unfiled and unpaid taxes, the truth is that the problem will never go away on its own. What you need to remember is that it’s never too late to file.

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What Happens if You Don’t File?

If you fail to file your taxes, the IRS may file on your behalf. This usually happens if you fail to respond to notices. The IRS employs a sophisticated system to verify how much each taxpayer owes. The system takes into account information such such as payroll and tax records. This is how the agency is able to know your earnings even if you don’t file. The biggest downside of letting the IRS file on your behalf is that you will forego most credits and rebates to which you may be entitled. This means that you will end up owing more and also be the subject of failure-to-file penalties. While you are still entitled to refunds even when you file late, the facility goes away if you delay for more than three years.

Related Blog Post: 4 Signs to Help You Avoid IRS Debt Tax Relief Scams?

How to File Late Taxes

When filing late taxes, you need to be in possession of W-2 or 1099 forms for the outstanding years to be able to accurately report your income. You will also need Form 4506-T: Request for Transcript of Tax Return from the IRS, if you are missing some documents. To get the best IRS debt help, it is imperative to consult an experienced Dallas tax attorney such as Nick Nemeth. In the event that you can’t pay the outstanding amount in full, tax attorneys in Dallas, Texas are best placed to assess your eligibility for different tax debt relief avenues including IRS offers in compromise, IRS penalty abatement, and IRS tax installment agreement.

Last Word

As said before, unfiled and unpaid taxes don’t go away even if you don’t receive IRS notices for a long time. The best way to handle unfiled and unpaid IRS taxes is to take action now, even if you are having financial difficulties. Avenues such as the IRS offers in compromise help lighten the burden of unpaid taxes. The Law Offices of Nick Nemeth has been helping the Dallas community get the best IRS problem solutions for many years. We have a team of highly experienced debt attorneys that are always ready to discuss your case and render the necessary assistance. To get a FREE no-obligation consultation, call (972) 426-2553 or fill out our contact form.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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