Unfiled Tax Returns

Unfiled Tax Returns – IRS & NYS


If you have not filed your federal income tax return, known as unfiled tax returns, for any reason, there is a solution. Filing past due returns is not an overly complex process. Taxpayers should file tax returns every year, and for all years that they are due, regardless if they are able to make a full payment with the return.

Depending on the circumstances for each individual tax payer, there are options to payoff balances. Though a full payment of taxes will save you money by eliminating penalties and interest, some taxpayers may qualify for a payment plan. Payment plans allow you to make a monthly payment through an installment agreement. If you are unsure which option works best for you, you should consult with an experienced New York Tax Attorney.

If you continue to not file your past due returns, the Internal Revenue Service will start to be proactive. The following might happen:

  • Penalties and interest will be added onto the amount of tax due
  • The IRS will file a substitute return. This return will be based solely on tax documents that are reported to the IRS. IT will not include additional expenses and exemptions that you might be entitled to. This means that there is a chance that the IRS could overstate your tax liability.
  • Once the IRS files a substitute return and has assessed the tax owed, they will start the collection process against the taxpayer. This means that levies could be placed on wages and bank accounts, or a federal tax lien will be made against property owned.

Even if the IRS has filed a substitute return on your behalf when you have unfiled tax returns, it is not too late to act. With the help of an experienced New York Tax Attorney, you can still file your own return, making sure to include all exemptions, credits, and deductions you are allowed.

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