In 2017, 10 million taxpayers filed for a tax extension through the IRS. Contrary to popular belief, filing an extension does not make you more prone to receive an audit from the IRS. For many people, an extension allows time to get finances in order to best prepare their business or themselves for any possible tax debt owed. An IRS extension allows you to forego the infamous April 15th deadline and file your returns by October 15th. But what happens when you miss the extension deadline? What will the IRS do next? file your tax returns, make sure you file right away. The longer you try to avoid the IRS, the more aggressive they will become in their collection tactics. TIP: The IRS does not make phone calls. If you receive a threatening phone call demanding immediate payment from the “IRS”, it is a scam. Deadline to File If you do not respond to the IRS official notices, you will receive a letter with a deadline to file. This deadline is usually 30 days out from when the letter was sent. The IRS has the legal right to file returns for you based on information they have received from past returns, however, it is always best to file your returns yourself.
Not filing your tax returns is a crime. Click here to learn your rights and next steps.Even if you are not able to pay your tax bill, always file with the IRS. The IRS can not send you to jail for not paying, but they can prosecute you for not filing. TIP: If you haven’t filed for many years, it is best to reach out to a tax professional to help you file. The longer you wait, the more complicated your tax case becomes. Don’t feel as if you have to face the IRS alone. Visit by a Criminal Investigation Division Agent Not filing your tax returns is a crime. If you continue to ignore the IRS’s attempts to contact you to file your tax returns, your case will eventually be turned over to their Criminal Investigation Division. This is the worst case scenario. If you are contacted by an agent in person, that means your case has turned into a criminal investigation. Regardless of your situation, if you are contacted by a Criminal Investigation Division agent it is crucial that you seek professional help to defend yourself. TIP: Never lie to the IRS or admit that you have not filed your tax returns. It’s always best to respond with “I will need to check my records” or some equivalent and then contact a tax professional. Final Thoughts Missing the October extension deadline is a sure way to put a damper on your holiday. Don’t let the stress and anxiety of unfiled tax returns ruin your holiday season.