Failed to File? Here's How to Deal with the IRS

Failing to file a federal tax return can have serious consequences. This is especially true for high-income non-filers—with the Internal Revenue Service (IRS) placing particular emphasis on holding these individuals accountable. With this in mind, if you failed to file a federal tax return in 2025, what do you need to know? Virginia tax defense attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

Coming Into Compliance Needs to Be a Priority

At this point, coming into compliance needs to be among your top priorities. Not only do you want to minimize your risk of facing an IRS audit, but every day that you don’t file, the amount you owe increases due to the penalties and interest that apply. Non-filing and non-payment both trigger penalties, and even if you don’t owe any federal tax, unpaid penalties accrue interest under the IRS’s regulations.

You Should Also Prepare for the Possibility of Facing an IRS Audit

While you need to prioritize coming into compliance, you also need to prepare for the possibility of facing an IRS audit. The IRS targets non-filers—including high-income non-filers in particular. Even if you file a delinquent return and pay what you owe, you will still be at risk of facing scrutiny from the IRS. If your delinquent filing triggers an audit, the IRS can examine up to six years of your federal returns (and in some cases even more).

There Are Options for Delaying Payment or Paying Less than the Full Amount You Owe

If you cannot afford to pay what you owe (or if you don’t want to pay the full amount you owe), you have options available. Depending on your individual circumstances, these options may include:

• Filing for penalty abatement
• Requesting currently-not-collectible status
• Seeking an installment agreement
• Seeking a settlement agreement
• Submitting an offer in compromise

Generally speaking, however, to pursue any of these options, you first need to satisfy your federal filing obligations. To make an informed decision about which of these options to pursue (if any), you should consult with an experienced Virginia tax defense attorney before you file anything with the IRS.

You Should Not Wait to See if You Get Audited By the IRS

Finally, while it is important to be prepared for the possibility of an IRS audit, you do not want to wait and see if you get audited by the IRS. This approach can be very risky, and, as discussed above, penalties and interest will continue to accrue. If you ignore your delinquent tax obligations, this can trigger additional penalties as well—including criminal penalties in some cases.

Schedule a Call with Virginia Tax Defense Attorney Kevin E. Thorn

If you are behind on your federal tax obligations in 2025, we invite you to get in touch. To schedule a call with Virginia tax defense attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, give us a call at 703-752-3752 or tell us how we can reach you online today.