Yes, You Do Still Have to File Taxes

Early filing numbers are measurably down this year, data security concerns are high, and IRS staffing is in disarray. But if you’re considering scrapping it all and “getting to it when you get to it,” here’s a tip: File your taxes. File an extension, if needed, but file. There are too many costly consequences for not doing so. 

“Both do-it-yourselfers and tax professionals filed fewer early returns this year. The IRS data indicated a 5% drop in the number of e-filed returns from tax professionals in the first four weeks through Feb. 21,” reports Susan Troper of the Detroit Free Press. 

Forbes’ Kelly Phillips Erb points out several theories about why this may have been (although no one really knows). Most prominently, with renewed IRS staffing cuts and hiring freezes and the Trump administration seemingly distracted in other ways, do taxpayers feel “that noncompliance will simply be met with a shrug”? Are we waiting for tax changes that could retroactively kick in? Are taxpayers nervous about potentially handing their data over to Elon Musk’s Department of Government Efficiency (DOGE) and what on Earth that might mean? 

But here’s what you risk for not filing: While the IRS has only three years to audit a filed tax return, there is no time limit for auditing years in which a return was never filed. (Read between the lines: If you don’t file, the IRS under the next administration could happily audit you.) It’s also incredibly expensive not to file. The failure-to-file penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to 25% of your unpaid taxes. 

Plus, if you fail to file, the IRS can prepare and file a substitute return for you. That return will NOT include the deductions and credits you may be entitled to receive. You may also risk losing your refund, Social Security benefits, and your ability to obtain a home, business, or education loan due to potential liens and credit issues.  

Filing taxes late is better than not filing at all, but it can also result in significant penalties and interest charges. Even if you can’t pay the full amount owed, filing on time and paying what you can helps minimize these added costs. 

Other reasons to file on time include:

  • Identity theft reduction: Criminals can’t file a fraudulent return using your information if you’ve already submitted your legitimate return.
  • A faster refund: If you’re due a refund, filing on time means you’ll receive it sooner. It turns out that refunds so far this year are higher and are being sent faster than last year. With IRS layoffs expected to increase, the longer you wait, the longer it may take to get a refund. 
  • Better financial planning: This is crucial if you own a business, significant property, or assets. Not only does filing on time help protect your credit and finances, but it can help you more accurately plan, budget, and take advantage of any new tax breaks to come. 
  • A longer runway for support: “Industry experts across the country have already noticed that it’s getting harder to reach an IRS agent on the phone, putting their clients’ tax returns and problems inevitably on hold,” Kiplinger reports. Even some considered high-value collection cases, usually assigned a one-point-of-contact revenue officer, report their communication attempts are going unanswered. 

Filing an extension is an option if you’re still unclear on your tax standing. It can help you avoid the penalties and drawbacks of being a non-filer. However, it’s still important to try to estimate and pay what you believe you’ll owe in taxes to avoid unnecessary late-payment penalties and interest. 

What if retroactive tax changes occur after you file? You can file an amended return within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later. Feel free to contact us with questions. 

Client Spotlight

A terrifying home invasion involving men with masks and guns set Pam Wood on an unexpected path to business ownership in 1981….
What happens when you combine a passion for creating, a knack for business, and deep family values? For Scott Klingler, owner of MergeWorks, it resulted…
Bessie M. Irizarry loves embracing a good challenge. It’s one of the many reasons she’s earned respect as a female engineer and business owner in…
San Antonio native Mark Lopez can’t recall a time he didn’t envision himself following the footsteps of his father, a project manager, into the construction…
Siew Pang knows that the key to unlocking the American dream can be discovered by embracing unexpected opportunities….
If you’re a San Antonian, you may not want to imagine your weekend without brunch at the city’s beloved Magnolia Pancake Haus….
Greg Thompson has long respected money and how it can catalyze greater things….
You may not be aware of it, but Don Lasseter has helped you throw a party. How do we know that? He’s the franchise owner…
Land surveyors aren’t known for exceptional customer service. But why shouldn’t they be? David Breaux set out in 1998 to prove that treating customers right…
When Lance Rose sees a business need, he fills it. That’s how he and Terri, his wife of 30 years, have evolved into the proud…
Matt and Lara Bruhn met while in graduate school at Harvard. He served as an officer and F-15C pilot with the U.S. Air Force….
Growing up in Piedras Negras, Coahuila, Mexico—just south of Texas along the Rio Grande—Oscar E. Flores dreamed of becoming a designer….

Blogs and Articles

Digital Assets and Your Taxes

You may have reveled in the Wild West days of cryptocurrency and other digital assets, but we’re entering an era of meticulous record keeping and...

Digital Assets and Your Taxes

Read More

The Goldilocks Rule for Tax Withholding

If you’re like half of Americans this year, you are more dependent on your tax refund to pay for necessities than you have been in...

The Goldilocks Rule for Tax Withholding

Read More

How Inherited Assets Affect Your Taxes

Inheriting assets can be a financial blessing, but it also raises essential tax questions that many heirs overlook. How you manage those assets can have...

How Inherited Assets Affect Your Taxes

Read More

Getting Hit by Someone Else’s Bankruptcy

Finding out that another business or individual who owes your business money has declared bankruptcy can feel like a kick to the stomach....

Getting Hit by Someone Else’s Bankruptcy

Read More

Welcome to Texas: Cutting Tax Ties with Your Previous State

San Antonio is currently one of the fastest-growing metro areas in the nation. If you’re among our new residents, welcome! Before you enjoy the tax-friendly...

Welcome to Texas: Cutting Tax Ties with Your Previous State

Read More

Reaching the Unreachable IRS

Reaching the IRS has always been challenging. With the IRS workforce reduction continuing, many believe your odds of reaching a warm body to resolve a...

Reaching the Unreachable IRS

Read More

How Is Costco Gold Taxed?

Gold, silver, and other precious metals have emerged as standout assets in today’s unpredictable economy due to their ability to remain somewhat independent from stock...

How Is Costco Gold Taxed?

Read More

Yes, You Do Still Have to File Taxes

Early filing numbers are measurably down this year, data security concerns are high, and IRS staffing is in disarray. But if you’re considering scrapping it...

Yes, You Do Still Have to File Taxes

Read More

Retirement Plan Perks for Texas Small Businesses

Retirement Plan Perks for Texas Small Businesses

Read More

Top 6 Worst Social Media Tax Tips

Top 6 Worst Social Media Tax Tips

Read More

What’s Happening with the Corporate Transparency Act?

In March 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule removing the requirement for U.S. companies to report beneficial ownership information...

What’s Happening with the Corporate Transparency Act?

Read More

Love & Marriage & Your Business Assets

Love & Marriage & Your Business Assets

Read More

How Small Business Owners Reduce Taxable Income

How Small Business Owners Reduce Taxable Income

Read More

Spot These Tax Scam Signs Before It’s Too Late

Spot These Tax Scam Signs Before It’s Too Late

Read More

‘Bitcoin Jesus’ Faces Tax Fraud Reckoning

‘Bitcoin Jesus’ Faces Tax Fraud Reckoning

Read More

Now Accepting New Clients

Let’s Start the Conversation

Let’s take a look at your finances together. We offer a complimentary 1-hour call to review your past tax returns. If we see a way to help you, we will.