Intentionally failing to file a tax return is a crime. While we do not see much made about this any more, the IRS will occasionally go after a taxpayer to make a point and generate a little press. It helps with voluntary compliance when the local civic leader is indicted by the IRS for failing to file, or pay, or some other form of criminal conduct. Makes the rest of us tread the straight and narrow for a while. And the penalties on any balance due on an old return can make your tax debt double in no time. Not filing is not a good plan.

Failing to file does not allow the time the IRS has to audit your return or collect any tax due to expire. It just stays open forever. It leaves you at risk for a very long time. And any refund you should have gotten is gone after three years. Plus most of the options you have for resolving a tax debt are not available to you with a tax return still not filed. This is a critical issue for taxpayers contemplating bankruptcy.

We have extensive experience helping taxpayers file old past due returns, even without good books and records. If you have not filed, you should contact one of our taxpayer representatives to help you prepare the old returns and then build a plan to resolve any outstanding tax debt you might have as a result of these returns.