Unfiled Taxes in USA: Solution

Every year in April, Americans file their income tax returns with the federal government, but many times there can be circumstances that prevent some taxpayers from filing their returns on time, or at all. When taxpayers have unfiled tax returns, they not only lose out on the potential refund money they may be eligible for, but they allow the IRS to file their return for them using a Substitute for Return (SFR).

SFR Facts

A Substitute for Return occurs when a taxpayer fails to file their tax return, and the IRS makes an educated guess for the taxes they may owe. The IRS will not know the extent of tax credits or deductions a taxpayer qualifies for, which can leave a taxpayer owing more taxes than they should.
Once the IRS files a SFR, the tax liability becomes an assessment, which may become final if a taxpayer fails to respond to the assessed tax debt, at which point the IRS is legally allowed to pursue collection actions.
When a taxpayer is notified about a tax debt due to SFR filings, it is encouraged that they seek professional tax assistance to help them. A tax professional will be able to file the missing tax years, which may decrease the tax debt amount substantially because of the omitted tax credits and deductions. Once all years have been filed, the IRS will allow the taxpayer to enter into a payment agreement for any remaining taxes owed.
If you have unfiled taxes, please call our tax specialists at (855) 327-9551 for a free consultation today.