Delinquent Business Returns

IRS Definition

The IRS has multiple programs to identify businesses that have not filed a tax return by the due date and are liable to file.

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If a business has unfiled tax returns, the IRS will require that all unfiled returns be filed. If you don’t file a required tax return by the due date, the IRS will charge a 5% per month penalty for failing to file and if there is a balance due, a .5% per month failure to pay penalty. Interest will also accrue on any unpaid balance from the day the return was due until the date it is paid in full. The IRS can also file a return for the business if no return is filed. The IRS prepares the return based on information it has from banks, financial institutions, other payers and based on prior returns that were filed.

If a refund is due, you must file the tax return within three years of the due date of the return or two years from the date the tax was paid, whichever is later, or you will lose the refund.

Learn more about how to deal with unfiled returns.

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