The Truth About Unfiled Taxes: What Really Happens If You Don’t File?

Ignoring your taxes might seem harmless at first…

But the reality? It comes with serious consequences—penalties, interest, and even legal action.

At King Financials, we’ve helped countless clients across Birmingham and Alabama overcome unfiled tax issues without stress or fear. In this post, we’ll explain what really happens when you don’t file taxes and what you can do about it now.

Why Filing Matters—Even If You’re Late

If you haven’t filed your taxes for a year (or more), you’re not alone—but it’s important to understand the risks.

📬 IRS Notices & Failure-to-File Penalties

Once the IRS notices you haven’t filed, they begin sending notices. These letters are serious—they often trigger the Failure-to-File Penalty, which can be 5% of your unpaid tax balance per month, up to 25% total.

💰 Interest Accrues from Day One

In addition to penalties, interest begins building the day your return was originally due. This means your balance grows every single day you delay.

🚨 Collection Actions: Liens & Levies

If ignored long enough, the IRS can take action including:

• Tax Liens: Claims against your property or assets

• Tax Levies: Garnishment of wages or seizure of bank funds

  
  

Don’t let it reach this point. The sooner you act, the more options you have.

How Back Taxes Add Up Fast

📈 Real-Life Example

Let’s say you owe $5,000 in taxes. After one year:

• $5,000 + 5% monthly penalty (max 25%) = $6,250

• Add 3–5% interest annually, and you’re quickly overwhelmed.

⏳ No Statute of Limitations (Until You File)

There is no time limit on how far back you can file a return. However, if you never file, the IRS can come after you indefinitely. They also have the right to:

• Recreate returns based on their estimates (called a Substitute for Return)

• Audit up to six years back or more if fraud is suspected

You’re Not Alone—And We Understand

Many people fall behind for understandable reasons:

• Health issues

• Divorce or family loss

• Business downturns

• Layoffs or reduced income

At King Financials, we don’t judge—we help. We specialize in IRS non-filer support and create a calm, confidential space to help you get caught up.

How King Financials Can Help You Fix It

Here’s what we do when you come to us for help:

🗂️ We Run a Full Tax History Report

We identify which years you missed and pull IRS transcripts.

📝 We Prepare & File All Missing Returns

We help you gather documents and ensure everything is accurate.

📞 We Contact the IRS for You

No more IRS calls or letters—we deal with them on your behalf.

🤝 We Negotiate Payment Options

We work with the IRS to reduce or remove penalties and set up affordable payment plans.

🔄 We Keep You Current

Our ongoing support ensures you never fall behind again.

Behind on your taxes? Let’s fix it—together.

Delaying only makes the problem worse. With our non-judgmental approach, we help you file safely, confidently, and without stress.

✅ Book your consultation today with King Financials. Let’s get you back on track—no pressure, just support.

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