What to Do If You Didn’t Submit a Tax Return
Litchfield, NH Resident Worries About the Implications
If you missed the tax deadline for only the past year’s tax return, you should go ahead and file as soon as
possible. However, if you have missed multiple years of filing taxes the IRS will require you to submit
the past six years of tax returns. Late filers may be hit with failure-to-file penalty from the IRS. The
amount of this fine is based on the amount of unpaid taxes and how late the return is filed. This penalty
is 5% of the unpaid taxes for each month the return is late.
A Litchfield resident realized that he had completely forgotten to file his taxes for the previous year,
missing the April deadline. In a panic and not sure what to do about this oversight, he contacted the
team at Merrimack Tax Associates for help.
IRS Penalties Incurred for Late Tax Returns
You may be penalized by the IRS for late tax returns if money is owed. This sum, which cannot exceed
25% of the outstanding tax debt is also subject to accrued interest. If you were expecting a tax refund
but neglected to file your tax return, the IRS allows you to claim a tax refund for missed returns that are
filed within three years of their original due date. If you wait beyond this time, you will likely forfeit any
Filing your tax return paperwork, without including payment for taxes owed, may incur a failure-to-pay
penalty. The total fee is based on the percentage of taxes that you didn’t pay, an additional 0.5% of
your unpaid taxes for each month that this balance remains outstanding will be added to the tax bill.
Again, the maximum penalty is 25% of the unpaid taxes, with the amount accruing interest over time.
Since the IRS penalties for filing or paying unpaid taxes past their due date will continue to grow over
time, it is important to submit a missed tax return as soon as possible. The team at Merrimack Tax
Associates was able to work with the Litchfield resident to get his tax return filed quickly and the
outstanding tax debt paid to minimize any penalties from the IRS.