Those Unfiled Tax Returns Are Heavier Than You Think

One year turns into two.

Two turns into three.

And before you know it, you've got several years of unfiled tax returns sitting in the back of your mind.

At TaxCity Advisors, we see this often, ESPECIALLYwith people preparing to file bankruptcy or already going through the bankruptcy process.

And one question we don't spend much time asking is:

Why didn't you file?

We're more interested in what needs to be filed and how we get you back in compliance.

Owing the IRS Doesn't Mean You Should Stop Filing

Sometimes the cycle starts because someone filed a tax return, owed money and couldn't afford to pay it.

So the next year, they think:

"If I'm going to owe anyway, why file?"

Because not filing doesn't make the tax obligation disappear.

If you're required to file and don't, you may face failure-to-file penalties, interest and other consequences. In some situations, the IRS can even use information it already has to prepare a Substitute for Return.

That's why we tell clients: filing the return and paying the balance are two different problems.

Get the return filed. Then figure out the best way to address what you owe.

Unfiled Taxes Carry Weight

The longer those returns sit, the heavier they can become: financially and mentally.

And if you're considering bankruptcy, unfiled returns can become even more important because tax filing requirements may affect your bankruptcy case.

That's where having the right professionals around you matters.

At TaxCity Advisors, we help taxpayers identify what's missing, prepare delinquent returns, reconstruct records when necessary and create a realistic path toward tax compliance. We also offer payment plans for qualifying tax preparation engagements when multiple years need to be completed.

You don't have to understand every tax law before you start.

You just need to know where you stand.

Let's figure that out first.

TaxCity Advisors

Tax Preparation • Bankruptcy Tax Compliance • Bookkeeping • Advisory

This article is for general educational purposes and is not legal advice. Individual tax and bankruptcy circumstances vary.