What are the Consequences of an Unsubmitted Tax Return?
The consequences of an unsubmitted tax return can range from a fine to jail time. In the event that a taxpayer does not file their tax return, they will be required to pay a fine for each month that they are delinquent. According to the IRS, the Failure to File Penalty is 5% of the unpaid taxes for each month that the tax return is late.
Taxpayers who do not file their taxes may also be subject to criminal penalties such as additional fines and/or jail time. If a taxpayer owes more than $25,000 in unpaid income tax or has willfully evaded paying these taxes, then they could face up to five years in prison and up to $250,000 in fines.
Additionally, individuals who wait more than three years without filing their taxes completely forfeit their refund. It is important to note that individuals who are in tax delinquency are at the highest risk of getting audited by the IRS.
What Should I Do if I Haven’t Filed My Tax Return Yet?
If you haven’t filed your tax return yet, it’s not too late. There is no time limit for tax collection. However, you need to act quickly. If you have accumulated years of unfiled taxes, don’t make the mistake of continuing to wait. Tax returns can be completed going back well over 10 years. Start the process of filing your taxes now to avoid increasing consequences and completely missing out on your refund.
Larry Bradford, CPA can help you work through your unfiled taxes and provide you with a fresh start. Give our office a call at 512-402-0049 or send an email to email@example.com to set up an appointment.