Unfiled Tax Returns — Maryland, DC & Virginia

Not filing a tax return is different from not paying taxes — and in many ways more serious. Failure to file is a misdemeanor under federal law. If the IRS believes it was willful, it can become a felony. Most people in this situation didn't intend to commit a crime — they fell behind, got overwhelmed, or didn't know they owed — but the legal exposure is real.

The practical consequences compound the legal ones. The IRS can file a Substitute for Return (SFR) on your behalf — but SFRs disallow every deduction you're entitled to, and the resulting bill is often dramatically higher than if you'd filed yourself. Once an SFR is filed, you still have options, but you've lost your chance to file the most favorable version of your return.

How we handle unfiled returns:

1. We determine how many years need to be filed. The IRS typically requires the last 6 years for compliance, but the specific requirement depends on your situation.
2. We gather your income information. In many cases we can reconstruct records using IRS transcripts and third-party documentation.
3. We file the returns in the most favorable way — claiming every deduction and credit you're entitled to.
4. We negotiate the resulting liability as part of the same resolution process, so you're not left with a clean filing and a new enormous bill.

State considerations: Maryland, Virginia, and DC all have their own failure-to-file rules and penalties. Resolving federal unfiled returns without addressing state returns leaves you exposed. We handle all jurisdictions.

The best time to address unfiled returns is before the IRS contacts you. We can get you into compliance quietly. Once the IRS has already initiated contact, your options narrow and the process becomes more stressful.