As Tax Season 2025 quickly approaches, it’s time to get organized and prepared to file your 2024 taxes. Over the years, we’ve noticed that taxpayers tend to fall into four main categories:

The Early Filers: Those who file quickly, often because they’re expecting a refund.
The On-Time Filers: Motivated by the April 15th deadline, they ensure their returns are filed just in time.
The Late Filers: Procrastinators who take advantage of the extension deadline in October.
The Non-Filers: Those who neglect to file entirely, often at great risk.

If you’re an early or on-time filer, congratulations! You’re on the right track—keep up the great work. But if you fall into the Non-Filer category, it’s important to understand how dangerous this can be.

The Risks of Not Filing
Let’s say you’re a self-employed business owner who receives a 1099-NEC from a company that paid you for your services. That 1099 is submitted to the IRS, so they already know the income you received. However, they don’t know about your business expenses or deductions that could offset that income.

If you fail to file a tax return, the IRS’s automated system will flag your account and send you a CP59 Notice, requesting that you file immediately or explain why you’re not required to file. Ignoring this notice can lead to serious consequences.

What Happens if the IRS Files for You?
If you don’t respond, the IRS will take matters into their own hands and file a substitute return on your behalf. Here’s what that looks like:

  • They report only the income they know about (e.g., the $100,000 from your 1099).
  • They assume you’re single with no dependents.
  • They don’t account for any business expenses, deductions, or tax credits you may qualify for.

As a result, you could owe significantly more in taxes than you should—potentially up to 50% of your income once late-filing penalties and interest are added.

How to Avoid These Issues
To stay in control of your taxes and avoid IRS intervention:

  1. File Your Return on Time: Gather all necessary documents, including income records and proof of expenses, and submit them before the deadline.
  2. Work with a Tax Preparer: A professional can ensure your deductions, credits, and filing status are accurate and maximize your tax savings.
  3. Don’t Wait: If you’re behind on prior-year returns, it’s never too late to catch up. Filing now can prevent further penalties and interest.

Be in Charge of Your Taxes
If you’re a non-filer, take action today to regain control of your financial future. Filing your return on time with all the necessary details not only ensures you’re compliant but also protects you from unnecessary taxes and penalties.

We look forward to helping you this tax season with your 2024 taxes—or any prior-year returns you need to catch up on!

If you have questions, contact our team at 417-380-5000 or transportation@abacuspro.com.