The Hidden Dangers of Unfiled Tax Returns

Life gets busy, and sometimes filing your taxes can fall through the cracks. Whether it was a tough year financially, you were overwhelmed, or simply forgot, unfiled tax returns are more common than you might think. But what many taxpayers don’t realize is that the consequences of not filing can snowball quickly—and cost far more than they expected.

If you or someone you know has years of unfiled returns, now is the time to act. Here’s why it’s critical to resolve this issue and how a tax resolution professional like Janet M. Sienicki LLC can help.

What Happens When You Don’t File Your Tax Returns?

The IRS doesn’t forget. Even if you don’t hear from them right away, interest and penalties on any balances begin accruing immediately after the filing deadline passes. Here are just a few things that can happen:

• Substitute for Return (SFR): If you don’t file, the IRS may file a return for you. This almost always results in a higher tax bill.
• Penalties and Interest: The Failure to File penalty is typically 5% of the unpaid taxes for each month your return is late, up to 25%. Combined with interest and the Failure to Pay penalty, your balance can grow rapidly.
• Enforcement Actions: Unfiled returns can lead to tax liens, levies, wage garnishments, or even passport restrictions.
• Loss of Refunds or Credits: If you’re owed a refund, you only have three years to claim it by filing your return. After that, the money is gone for good.

Why People Don’t File

We work with clients every day who haven’t filed for years. Common reasons include:

• Fear of owing money they can’t pay.
• Major life events (illness, divorce, job loss).
• Misunderstanding filing requirements (especially for self-employed individuals).

Whatever the reason, it’s never too late to start fixing the problem—and the IRS is often more cooperative when you make the first move.

How We Help Resolve Unfiled Returns

At [Your Company Name], we understand how overwhelming it can feel to face years of unfiled tax returns. Here’s how we can help:

• Tax Return Reconstruction: We help gather wage and income receipts from the IRS to recreate your missing tax returns.
• Penalty Relief Requests: If you qualify, we’ll pursue penalty abatement options to reduce the amount you owe.
• Strategic Filing: We help you determine which years to file first based on IRS requirements and your financial interests.
• Compliance Planning: We’ll get you back in good standing with the IRS and help you stay compliant moving forward.

Don’t Wait—Get Back on Track

The sooner you take action, the more options you have—and the less you’re likely to owe. Contact Janet M Sienicki LLC today for a confidential consultation. We’ll walk you through your options and help you start fresh.