• May 26, 2022
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No one wants to see themselves on the wrong side of the IRS, which is why it is important to take all possible measures to abide by the filing guidelines stipulated by the authority. That said, many people, despite paying taxes, ignore the significance of filing a tax return. Most US citizens and permanent residents in the country are required to file a tax return if their annual income exceeds a certain amount. If you haven’t filed your income tax return, this article could be an eye-opener. Read on as we present the possible repercussions of an unfiled tax return.

Possible Repercussions of Not Filing a Return

If you qualify and are required by law to file a tax return, but are unable to do it by the due date including extensions of time to file, it can lead to any one or more of the following repercussions:

Related Blog Post: A Look at the Initiation of IRS Tax Investigations

Failure-to-file Penalty – The first step the IRS takes on eligible taxpayers that fail to file a return in time is levying the failure-to-file penalty, unless they have a “reasonable cause”, a list of which has been stipulated by the IRS.

Failure-to-pay Penalty – If a taxpayer has not paid their tax obligations in full by the due date of filing the return, they may be subjected to the failure-to-pay penalty, unless they have a “reasonable cause”, or the IRS has approved their request for an extension.

Interest on Unpaid Taxes – Even if a taxpayer has been granted an extension to file or pay their taxes, the interest is still charged on the taxes not paid by the original due date. Similarly, the IRS also charges interest on penalties.

Related Blog Post: Tips to Qualify for the IRS Fresh Start Initiative

Note: In cases wherein taxpayers are to receive a tax refund, although there is no failure-to-file penalty; they risk losing the refund altogether if they do not file a return or claim it after the expiration of the statute of limitations. Keep in mind that you must file an original return claiming a refund within 3 years of its due date, after which the refund statute prevents the issuance of a refund check.

Wrap Up

Given the seriousness of the repercussions that may arise from an unfiled tax return, it is strongly advisable for qualifying individuals to file their return as soon as possible, irrespective of their reason for not filing. If you need expert guidance to help you out, you can always count on the IRS tax lawyers at The Law Offices of Nick Nemeth. To schedule your FREE confidential consultation in Dallas, Fort Worth, Houston or anywhere else in Texas, simply call (972) 426-2553, or fill out the Free Case Evaluation Form and we’ll take it from there.

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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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