Penalties. If back taxes are owed, a delay in filing returns may result in penalty and interest charges that could drastically increase your tax bill.

Lost Refund. In order to receive a refund, all delinquent returns must be filed within 3 years of the due date. If you snooze, you lose…YOUR REFUND!

Lost Earned Income Credit. If you are entitled to the Earned Income Tax Credit, your late tax returns must be filed within 3 years of the due date in order to receive the credit.

Lost Social Security Benefits. If you are self-employed, you must file delinquent tax returns reporting self-employment income within three years of the due date in order to receive Social Security credits toward your retirement.

JAIL!!! Willful failure to file a tax return is a CRIME. Nonfilers of tax returns need to act quickly to avoid criminal prosecution for failure to file a tax return.

To remedy the situation, you should file all prior years tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on your circumstances, nonfilers with late taxes may qualify for a payment plan or tax debt relief via an offer in compromise. Delay does not help your situation! If you are a non-filer with overdue tax returns, you need to file those late returns as quickly as possible.

However, due to the fact that there is a possibility of criminal prosecution, you should STRONGLY consider hiring an attorney to help you with prior years taxes and the filing of delinquent tax returns to protect your interests in the process.