Many taxpayers that meet with our lawyers in our Los Angles office often have not filed their IRS tax returns in many years. I actually met with someone who hasn’t filed a IRS tax return in over 25 years.
In terms of helping anyone with this type of tax problem it is important to prepare and file all unfiled tax returns. Besides the fact that unfiled tax returns could lead into criminal tax and tax fraud related problems with the IRS, you will probably pay less in taxes by filing your IRS tax return on your own.
What happens if you do not file IRS Tax Return?
Return Made by Service
Income, gift, and estate tax laws is based upon self-assessment by the taxpayer; deficiencies asserted by the government are subject to restrictions concerning notice and assessment. If no return is filed, or if the return is false or fraudulent, an authorized employee of the Service may make the return for the taxpayer from such information as can be obtained.
That’s right, IRS can file a tax return for you. Doesn’t this sound good? Not so fast. When IRS files a return on your behalf, they usually do not give you any tax credit, exemptions, allowances or expense which you may have been able to claim. This means that you will probably pay much more taxes than you would’ve imagined.