You have not filed a tax return or two or three or maybe even more and you’re wondering if you’re in trouble with the IRS because you haven’t heard anything from them. The answer is YES! You are in trouble. Don’t get a false sense of security just because you have not heard from the IRS. They’ve got your number (and your numbers!). The IRS maintains a file on every taxpayer. They have a record of all income you have earned from all sources.
It is not unusual for a taxpayer to go for a period of time with unfiled returns and not hear from the IRS. This does not mean the IRS has forgotten about you. They have not. At some point in time the IRS will send the taxpayer an SFR which stands for Substitute For Return. When they prepare the SFR they will prepare it in such a way as to apply the maximum tax and will include all penalties and interest. Then they will seek collection. It is at this point that you, the taxpayer, will need professional tax help.
On a more important note it is important to recognize that the IRS considers non-filing to be a criminal offense. The IRS always reserves the right to pursue prosecution by referring cases of non-filing to the Criminal Investigation Division of the IRS. Don’t let this happen to you! If you’re unfiled get your tax returns filed quickly and accurately!
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1 comment:
One time I did not file and when the IRS sent me a bill, I simply paid it. Am I out of the woods for that year? I paid the amount they asked for and did not refile a return. Does this action make the SFR the official return in this case if I don't want to go back and file and want to accept their assessment as final.
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