Tips for filing your unfiled tax returns successfully
  • January 28, 2020
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There are certain legal responsibilities every US citizen has to comply with every coming year. Filing and paying federal taxes is one that is a constant cause of stress for many. The more you put off filing and paying your taxes, the greater the risk of facing consequences that are enforced by the IRS. Unfiled tax returns can really disrupt your peace and result in financial hardships. In this blog, we explore how far back you ought to worry about unfiled taxes.

1. How safe am I from the IRS?

Some defaulting taxpayers find themselves basking in a false sense of peace and safety owing to the failure by the IRS to enforce collection for an extended length of time. Most underestimate just how much time and power the IRS has to collect on a tax debt.

Understanding The IRS Statute Of Limitations

Once 10 years have passed, the IRS can no longer collect on your tax debt from unfiled taxes. What you ought to appreciate is that it isn’t as simple as it sounds. In fact, the 10-year statute of limitations on your tax debt begins only after the IRS notices the unfiled tax returns, when you file the unfiled return, or when the IRS does it for you.

This means that even after the passage of 10 years since you forgot to file your taxes, the IRS can still come after you. Plus, once the 10-year time frame starts running, lack of action instantly exposes you to penalties. There are also many situations that can restart the clock on the statute of limitations. These include filing for an appeal, OIC, or bankruptcy, and signing a waiver. In any of these circumstances, the 10-year clock automatically restarts.

Related Blog: Procedural Map to an IRS Tax Investigation

2. Should I worry about old unfiled tax returns?

In short: Yes! Not only does failing to file your taxes expose you to penalties, both civil and criminal, it also attracts many other consequences.

  • First of all, by not filing, you allow the IRS to file your taxes for you in the form of substitute tax returns. When this happens, the IRS will file as if you’re single with no dependents. Therefore no deductions will be made which will most likely see your tax debt being exponentially higher.
  • Not filing your taxes for a long time may also exclude you from getting tax refunds. Since the IRS doesn’t allow taxpayers to collect tax refunds older than three years, by not filing your taxes for longer than that, you effectively lose claim to refunds from the same period. The money will go straight to the US Treasury.
  • Additionally, unfiled tax returns prevent you from being accurately credited for the missing tax years. In the long run, this can impact you when it comes to the collection of social security and medical benefits.

Related Blog: Self-Employment Taxes You Can’t Afford to Ignore

3. Should I seek professional help with unfiled tax?

If you haven’t filed your taxes, the best thing you can do is file and pay as soon as possible. Even if a substitute return has been filed in your name, you can still act through an amended tax return. Professional tax help really goes a long way to bring out the desired result when in such situations. The more you neglect filing your tax returns the more consequences you can face. Levys, liens, collecting directly from your salary or savings, seizing assets or investment dividends, etc are all real possibilities. Once the IRS has noticed your unfiled taxes and sets out to collect, there’s little you can do to get it off your back.

File Your Unfiled Tax Returns With Nick Nemmeth’s Law Offices!

Nick Nemmeth’s tax attorneys are experts at helping taxpayers solve issues to do with unfiled tax returns. We give you the best advice on your specific circumstances and guide you through the entire process. If avoiding penalties by filing your unfiled tax returns successfully is your goal, consulting with a tax law attorney is key! Call us at (972) 426-2553 for a free consultation of your unfiled tax returns case or any other tax concerns.

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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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