If you forgot to file in your tax returns for one reason or another, there are two possible immediate results. The first is you might get audited and second is the IRS may not notice it because of the millions of returns they receive every year. But do not pin your hopes on them overlooking your case forever. It may come back to haunt you sooner or later. Here are a few handy tips you can keep in mind if you did not file your tax return.
The most important thing to do is file your omitted tax returns. If you have multiple years that you need to file, go through your files to calculate how much you earned thiose years. Alternatively, you can order new W-2 forms from your employer by requesting them. Delaying this step will only make things worse and will not stand you in good stead with the IRS.
By not filing your returns you are subject to a fine which is more than for those who filed their form but have not paid their tax dues. If you continue to ignore the situation and you are getting letters and notifications from the government, you can expect a tax lien or the use of a levy to certainly remove money from your account. So if you have omitted to file your return, you need to make it right by immediately filing it and paying any fines imposed on you.
Most times when you missed filing your tax returns it means that you either did not want to pay your taxes (evasion) or you inadvertently omitted to file. The IRS knows this, but they can't substantiate it one way or the other, so they give most people the benefit of the doubt. Don't squander this good will with the IRS. In fact, you should take the chance to get back on the IRS' good books by paying something. Of course, since the IRS penalties and fees are high, you may not be able to clear your debt all at once but you will need to make at least token payments to keep the goodwill flowing.
Finally, the IRS is prepared to be lenient with you once, but if you become a repeat offender in failing to file your taxes in future, you will be in big trouble. If this is the first time you've muttered the words, "I forgot to file my tax return" there is help out there; just be sure you do not do it again.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.