• September 11, 2023
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IRS tax problems are not something you would want to carry around for years. Are you looking for help with years of unfiled tax returns and refunds? Have you received a notice from the IRS stating you have unfiled tax returns, and they are withholding a refund until you file delinquent taxes? Not filing just one return, even if it is unintentional, can wreak havoc on your life.  Not knowing what to do or how to do it increases stress. Don’t panic, we are here to help you with unfiled tax returns! First, let’s discuss who should file a tax return. 

Who Should File A Tax Return

Whether you are required to file an income tax return depends on a number of factors, such as your income, filing status, age, and dependency. Sometimes, even if you are not required to file a tax return, it may still be in your best interest to file the return. If you are wondering why, Nick Nemeth talks about five reasons why it still makes sense to file an income tax return even if you think you do not owe any tax to the government. Take a look.

1. Extra Income Tax Withheld

The Federal tax system authorizes employers to withhold some portion of their employees’ paychecks to pay for the taxes that they might owe to the IRS. Employees could be entitled to a refund in the following scenarios:

  • If their tax liability comes out to be less than the amount withheld by the employer
  • If they have already paid an estimated amount that exceeds their tax liability
  • If they overpaid their tax in the previous year

In all such IRS tax problems, one needs to file a return to get a refund of the extra amount paid.

2. Earn Income Tax Credit (EITC)

If you, individually or with your spouse, earn less than $50,270 a year, you may qualify for the U.S. Federal Earned Income Tax Credit (EITC). As far as the amount you can expect in the refund is concerned; families with qualifying children may receive up to $5891. However, you need to file a return to claim the credit if your family income is below the threshold.

3. Additional Child Tax Credit (ACTC)

If you have at least one qualifying child, but they do not get the full amount of the Child Tax Credit, you may qualify for this additional refundable credit. In such a scenario, you need to use Schedule 8821 – Child Tax Credit – to claim the credit. This is another scenario wherein it is essential to file a return.

4. American Opportunity Tax Credit (AOTC)

If you support a qualifying student, you may be eligible for this tax credit. Students in the first 4 years of secondary education may qualify for as much as $2,500. Even if a taxpayer has no tax liability, they can get up to $1000 as cashback for each eligible student. To claim the refund, use Form 8863 and submit it with your tax return.

5. Health Coverage Tax Credit (HCTC)

The HCTC is an IRS tax credit against health care insurance premiums. If you are 55–56 years of age and are receiving benefits from the Pension Benefit Guaranty Corporation (PBGC), you may also be eligible for a health coverage tax credit. Spouses and dependents may also be eligible, and can receive a 72.5 percent tax credit on payments they make for qualified health insurance premiums. In addition, you may be able to claim HCTC if you are receiving:

  • Trade adjustment assistance
  • Reappointment trade adjustment assistance
  • Alternative trade adjustment or pension benefits payments.

Unfiled Tax Returns Help and How to Get It

If you know that you have an unfiled tax return(s) or you have received a notice from the IRS, do not delay acting on it. The IRS can and will come looking for you. If you have received a notice, they are already looking for you. It is best to file any unfiled tax returns immediately.

How Unfiled Tax Return Refunds Work

If you do not file your unfiled tax returns, are you aware that the IRS can prepare missing tax returns for you? When the IRS prepares your unfiled tax returns, they may not know all of your deductions, expenses, dependents, or even your actual filing status.  Additionally, any other tax-saving strategies that could benefit you, will be omitted.

Unfiled Taxes Penalty

The IRS comes down heavily on taxpayers for unfiled taxes. It doesn’t matter if it is your first unfiled tax return and the lack of filing was purely unintentional. Any unfiled tax-penalty assessed can be steep. Not only that, it continues to compound daily. The IRS penalties continuously add up until you have resolved your unfiled tax returns issue.

Unfiled Tax Returns Limitations

Per the IRS, you risk losing your refund if you do not file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within three years of the return due date. This same rule applies to your right to claim tax credits such as the Earned Income Credit. The IRS will hold income tax refunds in cases where their records show that one or more income tax returns are past due. They will hold the refund(s) until they get the past due return or receive an acceptable reason for not filing a past due return.

How to File Unfiled Tax Returns

It is in your best interest to hire a professional tax settlement attorney to help you with any unfiled tax returns, as they are experts at the cryptic tax codes and tax laws. The Law Offices of Nick Nemeth are on your side. Consisting of reliable and experienced tax lawyers in the Dallas, Texas area who are experts in IRS tax relief and other tax problems, these experts determine which delinquent tax filings are required by the IRS. If you are entitled to an unfiled tax return refund, they will do their best to help you get it. By using IRS tax lawyers’ help to file your unfiled tax returns, you can rest assured they will be the primary IRS contact and all communications will go through them.

If you have been in a similar IRS tax problem situation where you have not been able to pay your taxes and are now worried about the IRS penalizing you for the same, then here are four steps that can help you dig your way out of this problem.

Step 1: Collect required tax documents.

Get copies of your W-2s, 1099s and all other relevant tax documents for the year you were not able to file your taxes. If you do not have the required documents, ask the IRS for free copies of those documents. You can also contact your employer or the financial institution (the one who sent you the documents) for the same.

Step 2: Hire a tax professional.

Tax matters are complicated, and most people cannot handle them on their own. In cases like these, where one has to handle incomplete tax documentation or negotiate with the IRS, seeking help from a tax lawyer becomes all the more important. An experienced tax attorney can guide you on how to go about filing your old tax returns, but on an even better note, they can also do it on your behalf.

Step 3: Work out a payment plan.

Once you have filed the taxes, take the help of an IRS tax attorney to come up with an easy to repay payment plan. The IRS allows taxpayers who owe less than $50,000 to repay their back taxes in the form of monthly installments, over a period of 72 months. If a taxpayer owes more than $50,000 to the IRS, and cannot repay the amount in 72 months, should contact the IRS directly and work with them to come up with a feasible payment plan.

Step 4: Claim your tax refunds.

Do you know that even late filers can claim their pending tax refunds? The IRS allows taxpayers to claim their pending tax refunds, however, there are strict time limits for doing so. Typically, a taxpayer can claim their tax refunds up to three years from the start of the due date for claiming the return. If, however, you have any balance due from any other year, then your refund might be adjusted against the same.

Wrap Up

It is imperative that you do not delay filing unfiled tax returns. The IRS will not stop looking for you, and for every day that goes by, the penalty and interest assessed are greater. Call the Law Offices of Nick Nemeth today at (972) 426-2991 and let them help you get any unfiled tax return refund you may be entitled to, as well as relief from worrying about the IRS. Schedule your free and confidential consultation with Nick Nemeth personally and get expert advice right away.

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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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