What Do You Need to Know if You Didn’t File Your Taxes on April 18, 2022?

Another tax season has come and gone. But, for many U.S. taxpayers, this does not mean they can breathe a sigh of relief until next year. An estimated seven million U.S. taxpayers fail to file with the Internal Revenue Service (IRS) annually—many of whom owe more than they can afford to pay.

If you didn’t file your federal taxes on April 18, 2022, what do you need to know? New Jersey IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

Delinquent Taxpayers Cannot Ignore Their Obligations to the IRS

First and foremost, you cannot simply ignore your obligations to the IRS. Delinquent taxpayers must address their circumstances proactively. The longer you wait to come into compliance, the more you will owe—and the more likely you will be to face an IRS audit or tax fraud investigation.

Taking a Wait-and-See Approach is a Mistake

In this same vein, taking a wait-and-see approach can prove to be a costly mistake. While some taxpayers might think that they can just wait and deal with the IRS if and when their tax filings (or lack thereof) come under scrutiny, this approach can substantially increase the penalties that are on the table. It can also limit the options delinquent taxpayers have to mitigate their liability.

Filing a Late Return Might (or Might Not) Be Your Best Option

While the Internal Revenue Service (IRS) states that, “[a]nyone who didn't file and owes tax should file a return as soon as they can and pay as much as they can,” this isn’t necessarily your best option. It might be, but it also might not. For example, if you are at risk for criminal penalties due to your failure to file and/or failure to pay, then submitting a late return could simply give the IRS (and the U.S. Department of Justice (DOJ)) more evidence to use against you.

You May Need to Consider Alternatives to a Late Filing

If filing a late return isn’t your best option, then what is? The answer to this question depends on your individual circumstances. For example, some of the primary options that are available to delinquent taxpayers in 2022 are:

• Submit an Offer in Compromise – If you cannot afford to pay what you owe, submitting an offer in compromise could help you resolve your issues with the IRS.
• Apply for Penalty Relief – U.S. taxpayers who are behind on their filing and payment obligations can qualify for penalty relief in three primary circumstances.
• Make a Voluntary Disclosure – If you are at risk for criminal penalties due to a willful tax law violation, then making a voluntary disclosure could save you from prosecution.

Discuss Your Situation with New Jersey IRS Lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group

Taxpayers who are behind on their federal filing and payment obligations need to make informed decisions based on sound legal advice. To discuss your situation with New Jersey IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, call 201-355-8202, email ket@thornlawgroup.com or request an appointment online today.