Help With Unfiled Tax Returns in Houston

What happens when a return isn’t filed

• Penalties and interest add up. The late-filing penalty is 5% of the unpaid tax for each month the return is late, up to 25%. Interest is charged on top of that.
• The IRS can file a return for you. This is called a substitute return. It usually leaves out deductions and expenses you would have claimed, so the bill is often higher than what you actually owe.
• There’s no time limit for a year you never filed. The IRS can assess tax for that year at any point.
• Refunds expire. If you were owed money, you generally lose it if you don’t file within about three years of the due date.

How far back you need to go

The IRS generally asks for the last six years of returns. The right number for you depends on your situation and on any letters you’ve received. I confirm it before I prepare anything.

If you got a letter

If the IRS says it’s proposing tax for a year you didn’t file, the letter has a deadline. A notice of deficiency gives you 90 days to respond. Send me the letter right away. Filing your own return is usually the fix.

How I help

• I pull your IRS income transcripts for each missing year, so we can see the W-2s and 1099s the IRS already has.
• I rebuild your income and expenses from your records and bank statements, including Schedule C if you own a business.
• I prepare each return on that year’s forms.
• If the IRS already filed a substitute return, I file your real return to replace it.
• Then I work out the balance. That includes penalty relief and a payment plan if you need one.

What it costs

There’s no fixed fee. I quote in writing after I’ve reviewed your transcripts. Book a free 15-minute consultation.

Sources: IRC §§ 6020(b), 6213(a), 6501(c)(3), 6511 and 6651(a)(1); IRM 1.2.1.6.18 (Policy Statement 5-133).

Related: IRS Tax Resolution · IRS Penalty Relief · IRS Payment Plans