The Consequences of Unfiled Tax Returns

If you have heard that the IRS completes the tax returns for those who fail to do so, it is true. However, it is a PENALTY. It is not done out of goodwill. In this case, the filing process is called a Substitute for Returns (SFR). When the IRS prepares SFRs, they do not include any exemptions and/or deductions. What’s more, interest and penalties are calculated based on the tax obligation. The result? You will end up with an inflated tax obligation.

Do not wait for the IRS to contact. Aim to resolve all your missed tax returns pronto. If you are clueless about filing tax returns, do not worry. Work with a professional who can help you organize the information you need to file back taxes.