An educational guide on the risks of not filing taxes, common reasons people fall behind, and how a CPA can help.

Life Happens….But the IRS Doesn’t Forget!

Whether it’s been a tough year, an overwhelming life event, or you simply forgot, unfiled tax returns are more common than you think. What most people don’t realize is how fast the consequences can snowball and how much it can end up costing you.

If you or someone you know hasn’t filed for one or more years, now’s the time to act. The sooner you address it, the more options you have.

What Happens If You Don’t File?

Even if the IRS hasn’t contacted you yet, penalties and interest are already building. Here’s what you might face:

  • Substitute for Return (SFR): The IRS may file a return on your behalf usually in a way that results in you owing much more than necessary.
  • Penalties & Interest: The “Failure to File” penalty is 5% of your unpaid taxes per month, up to 25%. Combine that with interest and “Failure to Pay” penalties, and your tax bill can double quickly.
  • IRS Enforcement: Unfiled returns can lead to wage garnishments, bank levies, tax liens, or even passport restrictions.
  • Lost Refunds: If you’re due a refund, you only have 3 years to claim it. After that, it’s gone for good.
Why Do People Fall Behind on Filing?

You’re not alone – here are some of the most common reasons we hear from clients:

  • Fear of owing more than they can afford
  • Life events like illness, divorce, or job loss
  • Confusion over self-employment or income reporting rules
  • Feeling overwhelmed and not knowing where to start

Whatever your reason, the good news is: you can still fix it and the IRS is usually more cooperative when you take the first step.

Have an IRS notice sitting on your desk? Don’t stress — let us review it and resolve it for you.

Client meeting with CPA for tax help – handshake agreement over desk

How We Help You Resolve Unfiled Returns

At Shalini Kodial CPA, we specialize in making this process easier, judgment-free, and solution-focused. Here’s how we help:

  • Tax Return Reconstruction: We pull wage and income transcripts from the IRS and help recreate your missing filings.
  • Penalty Relief Requests: If you qualify, we’ll pursue penalty abatement to reduce your total tax liability.
  • Strategic Filing Plan: We help you prioritize the most urgent years first and align with IRS expectations.
  • Ongoing Compliance Support: Once you’re caught up, we help you stay in good standing moving forward.

Don’t Wait – Every Day Adds More Interest

If you have one or multiple years of unfiled returns, now is the time to act. We’re here to help no judgment, just solutions.

Book a free consultation with Shalini today
Let’s fix it together and start fresh.

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