Proven Partners For Financial Health

What To Do If You Have Filed Inadequate Tax Returns Or None At All

You may have arrived at this web page on delinquent and unfiled tax returns for any number of reasons:

  • You have been asked for copies of a past tax return as you are applying for a loan or for some other reason, but you never filed one.
  • You are worried about unfiled tax returns from your past and you have no idea how to start remedying the situation.
  • Your last tax return (or a previous one) was incomplete or inaccurate and you wonder what to do.
  • The IRS or the Michigan Department of Treasury may be attempting to collect information or payments from you.

Whatever the circumstances, you are doing the right thing by looking for an experienced, established tax law attorney to help.

Consequences That You Should Strive To Avoid Or Remedy

If you filed an incomplete or inaccurate tax return or none at all, you may face one or more of these consequences:

  • If you did not pay what you owed, you may be assessed penalties, up to 25% of your unpaid taxes plus the unpaid amount.
  • If you should have received a refund, you have only three years to file so without losing your right to the refund.
  • If your business had losses but you did not file, you will not be able to carry those losses over to offset the next year’s profits.
  • If you were due a tax credit of any kind, such as a child tax credit, you will forfeit your eligibility for it.
  • The IRS might create a substitute tax return for you, possibly with more taxes due than if you had filed it yourself.
  • If you owe taxes and remain in default, the IRS might begin aggressive collection efforts, possibly including liens on your property, wage garnishment, bank account levies and property seizure.
  • Your passport might be revoked.
  • Ultimately, you might do jail time for evading taxes.

Remember: Failing To File A Tax Return May Be Your Biggest Mistake.

The worst mistake is to do nothing. If you file an inadequate tax return, the IRS has a 10-year statute of limitations to enforce or collect on your tax obligations for that year. But if you never file, the IRS can initiate proceedings against you at any time.

Our metro Detroit area tax law attorneys are here for you. To schedule a free 30-minute consultation with a lawyer, call Gudeman & Associates, P.C., at 248-630-3671 or complete our online inquiry form.