Sign in

Unfiled Tax Returns: Consequences and Statute of Limitations

Patrick Walter
Unfiled Tax Returns: Consequences and Statute of Limitations

In today’s busy and demanding lives, prioritizing tax return filing can be challenging. Many taxpayers, in an attempt to avoid stress, opt for the simplest solution: not filing their taxes. However, it's essential to note that tax return filing is mandated by law. Failure to file can have severe consequences. The IRS, as a tax collection authority, can employ various methods to penalize defaulters. In this blog, we will delve into the consequences and statute of limitations related to unfiled tax returns, as well as how a tax attorney can assist you. This will help you understand your options and make informed decisions.

What happens in the case of unfiled tax returns?

Unfiled tax returns can lead to a host of problems, both legally and financially. When you fail to file your tax returns, you risk facing several IRS problems. Failure to file your taxes can result in significant tax debt, which may lead to even bigger IRS problems. The IRS may assess penalties, interest, and even initiate legal action against you. Remember that tax return filing is mandatory. If you need assistance with filing your unfiled tax returns, consider consulting with a seasoned tax settlement attorney.

IRS Statute of Limitations on Unfiled Tax Returns 

Three aspects of the Statute of Limitations are relevant for cases of unfiled tax returns.

Statute of Limitations for the IRS to File Substitute Returns on Unfiled Tax Returns 

It's important to understand that there is no statute of limitations on unfiled tax returns. If you haven't filed your taxes, the IRS can file a substitute return for you. This is a critical aspect to be aware of because the longer you wait to file, the more interest and penalties can accumulate, apart from the refund that you’ll lose.

Statute of Limitations to Claim Tax Refunds

Although the statute doesn’t technically apply here, if you have overpaid your tax returns but haven’t filed yet, you have until three years from the filing due date to claim a refund.

Statute of Limitations on Tax Collection 

While there is no statute of limitations on unfiled tax returns, there is a statute of limitations on tax collection. The IRS typically has ten years to collect the tax debt from the date of assessment. After this period, the tax debt becomes uncollectible. However, it's crucial to note that this doesn't mean your tax debt magically disappears. It may still appear on your financial records and affect your ability to get credit.

Get Unfiled Tax Return Help from a Tax Relief Attorney

Unfiled tax returns can result in various legal and financial consequences. Understanding the IRS statute of limitations is essential to addressing unfiled tax returns and finding a way to resolve your IRS back tax problems while staying within the law. If you're dealing with years of unfiled tax returns and the associated IRS problems in Dallas, seek assistance from an experienced tax relief attorney. They can help you navigate the complexities of unfiled tax returns, negotiate with the IRS on your behalf, and explore options for tax settlements. An experienced tax lawyer in Dallas, with expertise in tax relief can guide you through the process of addressing your unfiled tax returns, helping you avoid further penalties, and potentially securing refunds if you are owed them.

Patrick Walter
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more