Have Unfiled Tax Returns? What you need to know and what to do.

Industry Observer with Redden Law 391899

I am Michael Redden and I am a tax lawyer in Minneapolis, MN.  A focus of my practice is civil and criminal taxpayer representation.  There are a lot of people out there that haven't filed their tax returns.  According to recent IRS estimates, there are at least 10 million tax payers that the government has identified as "non-filers."  There are many reasons why it happens, but, for whatever reason, these folks have at least one or more tax returns that were never filed.


Some folks haven't filed returns for over ten years.  Every year that you fail to file a tax return your problems with the IRS can compound.  If you happen to owe money, the failure to file penalty is 5% each month with a cap of 25% per tax year.  This penalty can quickly bring the bill out of reach for many to pay.  If you actually let it get to that 25% then a failure to pay penalty of 1/2 to 1% per month can start piling on afterwards.  Pretty soon the IRS begins to send out levies and file liens.  And, the government really knows how to collect.


Before too long, the situation might seem hopeless to you.  Don't think that.  The first thing to do is get compliant.  In order to be compliant, at least at the federal level, you need to file the last 6 years of returns and be upto date on current payments.  Once you are compliant then you can begint to deal with the debt.  Offers-in-compromise, payment plans, and even non-collectible status are possible solutions once you are compliant.  Becoming compliant will also show the IRS that you really do want to do the right thing.  This good faith is sometimes all you need to start a better relationship with the IRS and begin to really tackle your tax debt problem.


If you or someone you know has a tax problem with the IRS or the state department of revenue, feel free to contact me at (763) 515-0478, set up an appointment online ,or email me at mredden@reddenlawoffice.com


Michael Redden

Attorney at Law

Redden Law, PLLC

12800 Whitewater Dr.

Suite 100

Minnetonka, MN 55343

Ph: 763-515-0478

Email: mredden@reddenlawoffice.com




Comments (6)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

May 18, 2021 02:32 PM
Michael Redden

Thanks John!

May 18, 2021 02:38 PM
Gwen Fowler-864-638-3599 SC Mountains Lakes Homes
Gwen Fowler Real Estate, Inc - Salem, SC
Gwen Fowler Real Estate, Inc.

This is a very timely article.  I wish they would do another amnesty period to give folks time to catch up.

May 19, 2021 08:47 AM
Michael Redden

There are still some voluntary disclosure programs.  The key is to just get started on the problem.  As long as you are communicative and working with them, most folks can get a resolution.

May 24, 2021 02:20 PM
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Welcome to ActiveRain and congrats on your first post. Always looking for tips on taxes.

May 20, 2021 04:26 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I remember taking a class on Taxation years ago , where speaker said “Even if you have no money to send in , Always File On Time !!

May 22, 2021 05:25 AM
Michael Redden

Absolutely. You want to start the collections statute of limitations.  Plus you can avoid that nasty failure to file penalty!

May 24, 2021 02:20 PM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

May 26, 2021 06:58 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Michael Redden welcome to ActiveRain, and congratulations on successfully posting your first blog on this site.

Aug 27, 2021 09:02 PM