Tax Preparation and Tax Relief Costa Mesa


What to Know About Unfiled Tax Returns and Filing Your Taxes in Costa Mesa

The IRS considers unfiled tax returns (or delinquent returns) a priority when it comes to pursuing taxpayers that are not in compliance with the tax laws. When a taxpayer fails to file their taxes, the IRS sometimes prepares a tax return for them, referred to as a “substitute for return”, or SFR. These SFR returns often result in a tax debt that is overstated due to the limited information the IRS has to prepare the return.


What are the penalties for not filing my taxes?

The IRS can assess a penalty if you fail to file a tax return on time. The failure-to-file penalty is usually five percent (5%) of the unpaid taxes for each month or part of a month the tax return is late, up to 25%. When tax is due on the return, the IRS will assess a failure-to-pay penalty in addition to the filing penalty. Taxpayers with sufficient evidence for reasonable cause may qualify for an abatement (removal) of the penalties and related interest.


Can you help with my unfiled tax returns and tax preparation needs?

Prior to preparing your tax returns, we will examine your IRS tax records to verify which returns you still need to file. We will discuss your filing requirements with you and provide an explanation of the information and documents needed to complete the filing of your taxes. After considering all applicable credits and deductions, we will then prepare your individual and/or business tax return(s) and submit them to the IRS and State taxing authorities. Where appropriate, we will pursue removal of any related penalties, such as the failure-to-file penalty, and then follow up to address any tax due on the return. It’s important to note that the IRS requires taxpayers with back taxes and other tax disputes to file all tax returns before their IRS matter can be resolved.


See: 6 Ways to Reduce Your Chance of an IRS Audit

See all Costa Mesa Tax Relief services

If you need help with unfiled returns and filing your taxes in Costa Mesa, contact us today at 1-949-260-4770 for a free, confidential consultation with experienced Costa Mesa CPAs, enrolled agents, and tax attorneys.