What You Should Know About Unfiled Tax Returns Before Year-End

In this article, you can discover…

• What to expect if you don’t file taxes before the end of the year.
• How unfiled returns might impact your taxes and returns in the future.
• Why it’s important to contact an attorney before you file overdue taxes.

What Are The Penalties For Not Filing My Taxes Before The End Of The Year?

The penalty for not filing by the deadline is 5% of the tax due per month, up to 25% of the tax.

In addition, the penalty for not paying the taxes when they are due is one-half of 1% per month, up to a maximum of 25% of the tax.

Will The IRS Contact Me If I Haven’t Filed In Several Years?

The IRS will eventually contact you, sometimes within eight to 18 months, in other cases within four to five years. It really depends on how their computerized systems kick out names and numbers to determine who to contact next. But be assured, they will eventually contact you.

Will Filing Now Stop IRS Collections Or Wage Garnishments?

Unfortunately, filing late will not stop IRS collections. When you file, this will put a stop to any non-filing penalties, but the IRS will continue with active collections, which can lead to a levy.

How Do Unfiled Returns Affect Future Tax Credits Or Refunds?

Any refund you would have received will be redirected toward paying off unpaid older taxes that you owe. You could also lose most, if not all, of your tax credits if you file your taxes very late (i.e., several years late), which would have been available had you filed on time.

What Happens If I’m Owed A Refund For A Year That I Didn’t File?

You certainly won’t get that refund if you don’t file. If you file more than three years after the filing was due, you won’t get any refund.

Instead, that amount will go to the treasury. If you file within three years of when the taxes were due, you will either get the refund or, if you owe delinquent taxes, the refund will be applied to the delinquent taxes.

Should I Speak With A Tax Attorney Before Filing Old Returns?

You should definitely speak with an attorney before you file old returns. A tax attorney can…

1. Supply the correct form if you don’t already have it.
2. Make sure that you’re filling the form out correctly.
3. Ensure you apply the correct and full deductions to your returns once you file.

Still Have Questions? Ready To Get Started?

For more information on unfiled tax returns in South Carolina, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.