If you had a financial interest in or signature authority over foreign accounts exceeding $10,000, you need to file a Foreign Bank Account Report (FBAR). An unfiled FBAR can lead to a $10,000 penalty for non-willful violations and much higher penalties for willful violations.
If you’re having tax problems
It may seem overwhelming if you have many years of unfiled tax returns to file. The good news is that the IRS generally only requires taxpayers to file six years of delinquent returns. The six-year rule can be adjusted in certain cases, particularly if there has been criminal intent to violate tax laws. However,… Read more »
Unfiled Tax Returns Some people avoid filing their tax returns because they don’t want to pay taxes to the IRS. Other simply forget or don’t know they need to file. Whatever the reason, having several years of unfiled tax returns can create problems whether you are due a refund or have a balance due to… Read more »
Letter 2566, Notice of Proposed Tax Assessment The first notice you’ll receive about a Substitute for Return (SFR) is typically a Letter 2566, Notice of Proposed Tax Assessment. When you receive this notice, the IRS is telling you, “You were supposed to file a tax return but didn’t, and here’s how much we think you… Read more »
What are the Drawbacks to Letting the IRS File an SFR on your behalf? If you don’t look forward to filing your taxes, having the IRS file your return for you might not sound so bad. However, there are several drawbacks to the Substitute for Return (SFR) filed by the IRS:
Pre-OIC Requirements Before you submit an Offer in Compromise (OIC) to the IRS, you must file all delinquent tax returns. If you send in an OIC and still have unfiled returns, the IRS will return your offer without even considering it.
Reasons for Requesting an Extension There are two major reasons taxpayers request a six-month extension to file their tax returns: • They waited until the last minute, and now they don’t have enough time to file their return. • They can’t afford to pay their tax bill. While the IRS will give all taxpayers an… Read more »
Unpaid Taxes, Unfiled Returns If you owe taxes to the IRS, you owe the tax whether or not your file. Some taxpayers avoid filing because they can’t pay their tax bill, but this doesn’t do anything to eliminate the tax debt.
What Happens If I Don’t File My Tax Returns? The law obligates every citizen to pay taxes to the IRS if their income satisfies a certain threshold. Only dependents are exempted from this rule. Similar to any other rule, filing tax returns is mandatory; there are no other ways about it. Failure to file tax… Read more »
Unfiled Tax Returns Could Mean You Are Missing Out on Some Serious Cash Are you interested in receiving an extra $847? That was the median tax refund due for unfiled 2014 returns. Unfortunately, if you never filed your return, you missed your chance to get your refund. That’s right, the money’s gone. It’s now property… Read more »