Unfiled Tax Returns
Unfiled Tax Returns: Each year, Taxpayers across the globe with U.S. and foreign sourced income may have a tax return filing requirement. When a person does not file tax returns in a year they are required to do so, they are considered a delinquent filer. When a U.S. Person has not timely filed tax returns with the IRS, they risk becoming subject to fines and penalties.
Despite these penalties, the U.S. Government has developed various amnesty programs to assist delinquent filers with unfiled tax returns along with unreported offshore assets, accounts and investments to get into compliance for delinquent prior year filing.
Since the IRS had made offshore enforcement a key priority, it is especially important for U.S. taxpayers with unreported foreign income and accounts to get compliance.
Filing Late or Delinquent Tax Returns
It is not uncommon for individuals to have not filed tax returns timely. There can be any number of different explanations as to why a person does not file tax returns.
Common Issues with Unfiled Tax Returns usually include:
- Filing Taxes Late
- Substitute Return was filed by the IRS
- Delinquent Taxes
- Past Due Taxes
- Filing Back Taxes
- Penalties for Not Filing Taxes
- Tax Amnesty
Do not worry, many of our clients have failure to properly file a 1040 (sometimes with many years) before taking the proactive step of getting into compliance
This may lead to a person having late return, or tax returns which were never filed in one more prior years.
When to Submit Unfiled Tax Returns
You can file your tax return (timely) if it is no later than the April date (usually the 15th, holidays/weekend permitting) or if you properly file for extension, you have until October.
If you miss the deadline, you are still required to file a return, but it is considered late. Since it is late, you may be subject to various penalties, although you may be able to get them waived if you file for amnesty or reasonable cause.
The real issue is that the time to collect a refund may expire.
IRS Tax Refund & Taxes
One big motivator to get you to file your taxes is that you may be entitled to a Tax Refund. And, the carrot/stick is that if you do not file your tax returns timely, you may be estopped (prevented) from applying for the refund (typically 3-years from when the tax returns were due)
Back Tax Returns
For each year a person is required to file a tax return but fails to do (and another year passes) the person is considered to be out of tax compliance for “Back Tax Returns.”
Filing Back Taxes
IRS compliance means going back and filing past tax returns. Since the Statute of Limitations for the IRS to audit or examine you does not begin until you have filed a tax return, you should speak with a specialist to evaluate your case, and assess your options.
Penalties for Delinquent Tax Returns
Depending on the facts and circumstances of your unfiled tax returns situation, you may be subject to many different types of penalties. But, you may also qualify for IRS Amnesty or Reasonable Cause, and have your penalties reduced or even abated completely.
Amnesty for Tax Return Filings
A person can usually file unfiled tax returns with one of the Voluntary Disclosure programs, in order to report and disclose unreported/undisclosed income, assets, accounts, or investments — and safely get into compliance.
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in IRS offshore and domestic voluntary disclosure and tax amnesty.
Contact our firm today for assistance with getting compliant.