Many problems occur when you have Unfiled Tax Returns for both the IRS and State. Unfiled Tax Returns may be construed as a criminal act by the IRS. The IRS may view you as a “Tax Protester”. You certainly do not want that to happen to you.
The IRS estimates that approximately 10 million taxpayers fail to submit their unfiled tax returns each year. Delinquent unfiled tax returns are often more closely examined by the IRS. When filing delinquent, unfiled tax returns it is important to move quickly and correctly, and to follow IRS guidelines for “voluntary compliance.”
In response, the IRS created a joint task force of revenue agents and Tax auditors from the IRS
Examination Division, revenue officers from the Collection Division, and special agents from the Criminal Investigation Division to locate non-filers and secure compliance with filing requirements. The IRS has substantially increased its budget for technology that will enable it to find and pursue taxpayers who fail to regularly file their tax returns.
The IRS Information Reporting System (IRP) is a multi-task system and contains a subsystem aimed at the discovery of under-reporting of income and taxpayers who have not filed their required tax returns. This subsystem is the backbone of the IRS effort to identify and locate non-filers. If you have not filed all required tax returns, and have not yet been discovered by the IRS, the time to act is now. If you fail to act now, the IRS is almost certain to knock on your door in the future.
THE CONSEQUENCES FOR HAVING UNFILED TAX RETURNS:
Criminal penalties for willful failure to timely file tax returns or pay taxes are mentioned at 26