Unfiled Business Returns

An unfiled business tax return can create long-lasting problems for your business — from aggressive enforcement actions and minimum penalty limits to loss of good standing and even criminal prosecution in severe cases. Unlike federal income tax obligations, state business taxes vary by jurisdiction, with each state having its own due date, penalty structure, and filing requirements.

From 2015 through 2024, states have stepped up audits, added stricter approval process steps for penalty relief, and lowered e-filing thresholds. If your company has unfiled income tax returns, unreported self employment income, or missing tax documents, the sooner you file your return, the better your chances to minimize penalties and avoid back taxes growing with daily interest.

Whether your missing filings are corporate income tax, franchise tax, sales/use tax, or payroll-related (like social security taxes or medicare taxes), ignoring the problem means overdue taxes never expire in most states. In some cases, states may prepare a substitute return for you — without your deductions, tax credits, or other offsets — which usually results in a higher tax bill.

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When to File Past-Due State Income Tax and Business Taxes

You should start filing past state returns immediately if you:

• Have back tax returns from any tax years between 2015–2024
• Operated in states with aggressive enforcement actions (California, New York, Illinois)
• Received notices for not filing or for unpaid wages and payments
• Need to fix previous year income tax or federal tax reporting to match state filings
• Want to restore good standing before applying for financing or a new bank account
• Are self employed and owe social security taxes or medicare taxes, or need to pay social security for self employment income

Many states offer voluntary disclosure or amnesty programs that can cut minimum penalty limits and stop interest, but you must act before they initiate contact.

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Why Resolving an Unfiled Business Tax Return Now Can Minimize Penalties

Taking action now can:

• Restore eligibility for medicare benefits, social security retirement, or other disability benefits impacted by tax issues
• Secure a tax refund you’re owed — sometimes the irs owes you money from the previous year
• Reduce overdue taxes, interest, and payments owed through penalty abatement
• Protect against criminal prosecution for willful not filing in high-risk states
• Allow you to update both state and federal income reporting together
• Help you work with a tax professional to claim missing deductions and tax credits
• Keep you from starting another year where you feel overwhelmed by compliance issues

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Our 4-Step Enforcement Actions & Back Taxes Resolution Process

1. Free Case Review – We review your tax information from 2015–2024, identify all jurisdictions where you have an unfiled business tax return, and determine potential back taxes owed.

2. Compliance & Risk Analysis – We calculate income tax, federal tax, and state business taxes, check for minimum penalty limits, and review opportunities to minimize penalties through voluntary programs.

3. Preparation & Filing – We prepare accurate tax returns (including income tax returns) for each tax year, submit them in chronological order, and ensure your tax documents match both state and IRS records.

4. Ongoing Support – We track your filings, assist with payments, work through approval process steps for penalty relief, and guide you on the irs website or state portals until compliance is complete.