What happens if my tax preparer did not file my taxes?
Dealing with the situation where your tax preparer has failed to file your taxes can be stressful and confusing. Understanding the potential consequences and the steps you can take to rectify the situation is crucial. Here’s a guide to help you navigate through this challenging scenario.
Immediate Consequences
1. Penalties and Interest: If the IRS discovers that your taxes were not filed, you may be subject to penalties and interest. The penalty for failing to file is typically 5% of the tax amount owed for each month that the return is late, up to a maximum of 25% of the tax owed.
2. Interest on Unpaid Taxes: If you owe taxes, the IRS will charge interest on the amount owed until the taxes are paid in full.
3. Legal Issues: In some cases, failing to file taxes can lead to legal issues, including audits or even criminal charges if it’s determined that the failure to file was intentional.
Steps to Take
1. Contact Your Tax Preparer: The first step is to reach out to your tax preparer. Determine if there was a mistake or if there are extenuating circumstances that led to the delay.
2. File an Amended Return: If your tax preparer is unable to file your original return, you may need to file an amended return. This is a way to correct errors or omissions on your original return.
3. Contact the IRS: If your tax preparer is unresponsive or unable to help, you should contact the IRS directly. The IRS can provide guidance on how to proceed and may offer options for resolving the issue.
4. Consider Hiring a New Tax Preparer: If you’re dissatisfied with the service provided by your current tax preparer, it may be wise to seek out a new one who can help you navigate the situation and file your taxes.
5. Prepare for an Audit: If the IRS initiates an audit, be prepared to provide documentation and explain the circumstances surrounding the late filing.
Preventive Measures
To avoid finding yourself in a similar situation in the future, consider the following preventive measures:
1. Verify the Status of Your Tax Return: After your tax preparer files your return, check the IRS website to verify that it has been accepted.
2. Keep Records: Maintain all communication with your tax preparer, including emails and phone call logs, in case you need to reference them later.
3. Understand Your Rights: Familiarize yourself with your rights as a taxpayer and the responsibilities of your tax preparer.
Failing to file your taxes can have serious consequences, but taking prompt action and understanding your options can help mitigate the impact. Always communicate effectively with your tax preparer and be proactive in ensuring that your taxes are filed on time.
