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Rogue Valley Tax Tips and Insights: They CAN'T MAKE me File My Taxes!

Education & Training with First Response Resolution, LLC

Welcome to the Tax Tips and Insights series of First Response Resolution, LLC’s official blog! We are a specialty tax firm practicing right here near Medford in Southern Oregon and the focus of my practice is solving tax problems for individuals and businesses and representing taxpayers before the IRS and State Departments of Revenue. We offer our services online nationwide from the comfort of our client’s homes and will provide services on-site to businesses in our area upon request. Think of our firm as your Financial First Responders who specialize in saving troubled taxpayers. We help people who are struggling with tax problems get their lives back on track so they can focus on what matters most to them.

In our last post we started to discuss the common inquiry from taxpayers about when can they just stop filing their taxes altogether. As the previous post indicated, there is no set age at which a filing requirement goes away. The determination of a filing requirement is one that is made annually and dependent on many factors. There are minimum income thresholds, but the bottom line is, if you have taxable income, you are required to file a tax return. Not filing a tax return when you have a requirement can be deemed to be a criminal offense. The IRS can be very aggressive when it comes to pursuing non-filers, especially serial non-filers who they deem to be “high income”, which some might find their determination of high-income to be surprising. We recommend that you take advantage of the IRS Tools to determine if you have a filing requirement that we provided a link to in the previous post.

There are many penalties that the IRS is actually required by law, set by congress, to impose on non-filers. The Failure to File Penalty is 5% of the tax owed per month, up to 25% of the tax owed. The Failure to Pay Penalty is 0.5% of the unpaid taxes per month, also capped at 25% of the tax owed. There is also interest charged on the unpaid balances, including penalties, that accrues daily, and the current rate is 7%. The penalties and interest can easily double the tax liability if unpaid for a couple of years. Many people believe that they have gotten away with not filing because they haven’t been contacted yet by the IRS, they will eventually catch up to them. When you don’t file your return, the tax is not assessed, and therefore the Collection Statute Expiration Date doesn’t start to countdown. The IRS has been operating with technology that hasn’t been improved for decades but is now implementing billions of dollars of new investment that will make their enforcement and collection efforts far more efficient. Many Notices of Deficiency will be generated and sent to taxpayers without having to be prepared or reviewed by a human.

Paying a tax preparer each year to handle your tax returns may be annoying, but there are worse events that could transpire when choosing to deliberately not file your tax returns when you are required to. If you have been assessed with back taxes owed and have interest and penalties being charged against you, we here at First Response Resolution, LLC can evaluate your situation and help you resolve these issues. Stay tuned for our final post on this topic and our suggestions if you are considering the choice of ignoring a filing requirement.

If you or someone you know is in the midst of an IRS issue, contact me at either 541-293-8449, by email at zach@firstresponseirs.com, or through our website. We specialize in solving tax problems! We will thoroughly investigate and evaluate your specific situation and consider ALL OPTIONS available to you. All discussions are kept strictly confidential, and we offer no obligation initial consultations of up to one hour.

Is your agency interested in having me speak to your team of realtors in person or over Zoom at one of your weekly sales meetings free of charge? I have a presentation developed to address the following:

  1. Taxation and your clients,
  2. Tax tips for saving on your own tax returns, and
  3. Tax Problem Solutions.


Contact us today!