「report tax returns」What happens if I don't file my tax form?

In the United States, tax declaration is a very cumbersome matter, resulting in many taxpayers unable to submit their tax returns on time.
If no tax return is submitted, the IRS will use the information it has to make a "replacement return".
What are the consequences of this "alternative declaration form"? What should I pay attention to as a taxpayer?

01 What is the alternative return?

IRS can know all the income of taxpayers through Form 1099 and Form W2.
Therefore, if the tax application form is not submitted on time, the IRS will use the information provided by the employer company or a third party to the IRS to make a replacement return.
What is the process? For example——
If you are a freelance photographer, you can provide photography services for several different companies at the same time.
These companies will send the income paid to you each year to the IRS and yourself through 1099-NEC, and the IRS will receive the original and send a copy to you.
Perhaps due to negligence, you did not declare the tax forms of 2022 and 2023, and this action triggered the DIF system of the IRS.
It will automatically scan and retrieve all your income records to calculate the tax you should pay.
At the same time, the DIF system will send you a 30-day letter and generate a replacement declaration form.
This return does not contain the amount of tax deduction and deduction that any taxpayer should enjoy. Therefore, the tax in the alternative return will be much higher than what you should actually pay - the IRS will prepare the alternative return for the purpose of promoting government tax.
If you still want to get some tax refund or exemption, please be sure to submit the tax return of this year within 30 days after receiving the 30-day letter.
When you feel that some data in the alternative declaration form is incorrect or inaccurate, you can apply to the tax court.

02 How to deal with IRS alternative tax returns?

Prepare materials that can explain income and support at the first time, the more detailed the better.
These materials include the following items:
Any notice or letter sent by the IRS
Any tax forms or documents, such as W2, 1099, mortgage interest statement, interest income, etc
Statistics of business-related income and expenditure (self-employed persons)
Last tax return submitted
If you can't find some income-related data, such as W2, 1099 and other forms, you can enter "wave and income script" on the IRS official website to search;
However, the specific expenditures, as well as the data related to tax credits and preferences, can only be viewed by calling the bank account.
If circumstances permit, you can find tax-related professionals to help you deal with this problem.

03 Tax assessment letter

When receiving the tax assessment letter, it indicates that the IRS has prepared a replacement return.
Within 30 days from the date of receiving the letter, the taxpayer needs to respond to the IRS:
After signing, return to the IRS and fill in the tax return
Return the information required in the letter on the specified date and attach the tax payment certificate
Call the IRS to explain why no tax declaration was made
The tax assessment letter issued for the first time will clearly list the amount of tax owed, fines and overdue fines to be recovered by the IRS.
In some cases, the IRS needs to refund part of the tax to the taxpayer.
Within the three-year validity period, the taxpayer can still get the tax refund or use the tax refund amount to offset the amount of tax arrears.
If the three years from the deadline of the initial tax declaration are missed, the IRS cannot refund the tax to the taxpayer again, nor can it use the tax refund for the outstanding balance of the next year, nor can it be used as the estimated tax of the next year.

04 Notice of tax arrears

In the event that the tax assessment letter is not replied in time, the IRS will send a notice of tax arrears. This letter will be sent in the form of registered letter, which needs to be confirmed and signed by the taxpayer in person.
Send this notice, on behalf of the IRS, to prepare to sue the taxpayer and take measures to force the recovery of taxes, fines and late fees.
Within 90 days after receiving the notice (the taxpayer can stay overseas for 150 days), the taxpayer needs to take one of the following actions:
Fill in and submit the original tax return
Litigation in the United States Tax Court
Call the IRS to explain why the tax return was not submitted