Failure to File, Failure to Pay, and the Growing Risks for Georgia Taxpayers
Understanding Civil and Criminal Exposure, and How Childress Law Firm P.C. Can Protect You
Every year, thousands of taxpayers across Georgia and the United States fall behind on filing their returns or are unable to pay the tax they owe. While many assume these matters result in nothing more than a small fine, the truth is far more serious: Failure to File and Failure to Pay penalties can grow as high as 25% of the unpaid tax, and both the IRS and the Georgia Department of Revenue (GADOR) aggressively enforce these penalties until the liability is fully resolved.
What begins as one missed deadline can evolve into years of mounting debt, interest, liens, garnishments, or even bank levies. Compounding the stress, federal and state authorities operate independently, meaning taxpayers can face two separate accelerating liabilities if both their federal and Georgia returns are delinquent.
At Childress Law Firm P.C., we step into these situations to stabilize the financial damage, negotiate payment solutions, resolve penalties, and restore compliance, so taxpayers can reclaim control of their lives and businesses.
Failure to File: A Critical Violation with Steep Consequences
The Failure to File penalty is widely regarded as one of the harshest civil penalties in the Internal Revenue Code. The IRS can impose up to 25% of the unpaid tax, accumulating monthly until the maximum is reached. Georgia follows a similar structure, issuing its own penalties for delinquent returns and often moving quickly into collection activity.
Many taxpayers fall behind because they believe they should not file a return unless they can also afford to pay. This is one of the most damaging myths in tax law. Filing on time, even without payment, avoids the steepest penalties and preserves the taxpayer’s rights to negotiate extensions, payment plans, or penalty relief.
More importantly, while most cases remain civil, failure to file can carry criminal exposure. Willful non-filing is technically a federal misdemeanor. Criminal cases remain extremely rare and are generally reserved for repeated, intentional violations, but taxpayers should be aware that the law treats non-filing as a serious breach of duty.
Failure to Pay: Common, Costly, and Frequently Misunderstood
Even when taxpayers file on time, many cannot pay the balance due. The IRS and GADOR impose separate Failure to Pay penalties, also capped at 25%, but these penalties grow monthly and are paired with ongoing interest. Over time, even a modest tax liability can double or triple if left unaddressed.
Georgia’s Department of Revenue is particularly swift in enforcing delinquent accounts. GADOR can garnish wages, levy accounts, and intercept state refunds more quickly than the IRS. Many taxpayers are surprised to learn that even after resolving their IRS debt, Georgia collections continue unless separately negotiated.
Although failure to pay can technically be prosecuted in rare, willful cases, the overwhelming majority of situations remain civil. However, ignoring the problem only increases penalties, encourages aggressive enforcement, and prolongs financial disruption.
Criminal Exposure: Real in the Statute, Rare in Practice
The Internal Revenue Code makes both failure to file and failure to pay potential criminal offenses. But in practice, criminal prosecution is highly unusual and generally limited to cases involving:
Intentional, prolonged noncompliance;
Fraudulent behavior;
Large understatements coupled with concealment; or,
Obstruction of IRS investigations.
For typical taxpayers, those who fell behind due to financial hardship, business setbacks, illness, or disorganization, the risk is overwhelmingly civil, not criminal. Still, understanding the statutory framework underscores why proactive resolution is essential.
Stopping the Snowball: Payment Plans and Real Solutions
A common misconception is that if taxpayers cannot afford to pay, the IRS or GADOR will not work with them. In reality, both agencies provide structured solutions, and many taxpayers qualify for:
Full or partial installment agreements;
Long-term payment plans;
Extensions to pay;
Partial payment installment agreements;
Offers in Compromise;
Penalty abatement; and,
Amended filings to reduce incorrect assessments.
These tools stop enforcement, halt garnishments, and prevent levies. But they must be negotiated correctly and supported by proper documentation. Poorly structured plans can default, leading to even harsher consequences.
At Childress Law Firm P.C., we negotiate with both the IRS and GADOR to secure payment agreements that are sustainable and protective of our clients’ financial futures. We manage all communication with tax authorities, ensuring our clients no longer have to navigate confusing notices or risk making statements that damage their position.
Why These Issues Are Fixable With the Right Guidance
Failure to File and Failure to Pay cases often feel overwhelming because penalties grow relentlessly and notices become increasingly aggressive. But with strategic intervention, these matters are among the most resolvable problems in tax law.
We assist clients by reconstructing filing histories, determining accurate balances, identifying penalty abatement opportunities, correcting inaccurate returns, and negotiating payment arrangements that stop collections. Our role is to provide clarity, direction, and a path forward, without call centers, templates, or generic advice.
Take Control Before Penalties Reach Their Maximum
A tax debt left unaddressed does not remain the same, it grows, month after month, until penalties reach their maximum 25%, interest continues to accrue, and enforcement intensifies.
If you are facing penalties from the IRS or the Georgia Department of Revenue for failure to file or failure to pay, now is the time to act.
Childress Law Firm P.C. is here to defend your financial future, negotiate payment plans, seek penalty relief, and resolve your tax issues with clarity and strength.
