Unfiled Tax Returns

Many taxpayers fail to file required tax returns for all types of reasons. You, the taxpayer, must be aware that failure to file tax returns may be construed to be a criminal act by the IRS. This criminal act is punishable by one year in jail for each year not filed. Needless to say, it´s one thing to owe the IRS money but another thing to potentially lose your freedom for failure to file a tax return. 

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The IRS may file a return for you and act as if it is actually your return. The IRS filed a return will be filed in the best interest of the government. That means that the only deduction the IRS will give you is the standard deduction and one personal exemption. You will not get credit for deductions which you may be entitled to include: exemptions for spouses and children, interest on your home, taxes on your home, the cost of any stock or losses on real estate sales, business expenses, etc.

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Regardless of what you may have heard, you have the right to file your original tax return no matter how late it's filed. The IRS may not initially accept it, but, with proper negotiation, they will accept it and adjust any return they may have filed for you. The CPA's of Kenneth D. Eichner, P.C. often prepare old non-filed tax returns that the IRS had prepared a substituted return for.