Unpaid Tax Returns
Are you mindful of the repercussions of not filing your tax returns? Did you know that it is a crime not to file your taxes? If you do not file, you may be fined up to $25,000 each year. Every year that you don’t file is also punishable by one year in prison. So even if you owe taxes and can’t pay them, file the return!
Nonfilers are searched with the computerized Information Returns Program. To see if you filed, the program matches tax returns with W-2s. A Taxpayer Delinquency Investigation is commenced if a return isn’t found. They will look for you and demand an explanation why you did not pay your taxes. A notice will be received by you. If you don’t reply to the notice, you will likely get phone calls or more correspondence. Do not assume that because it’s been a number of years since you’ve filed taxes and you haven’t gotten word from the IRS, that you are getting away with it. The IRS will find you in time.
Some methods the IRS utilizes for notification:
- Written notices
- Telephone call or a letter with a deadline notification
- Visit or telephone call from an agent who’ll also provide a due date
- Visit from a special agent, meaning a criminal investigation
You do not wish for the IRS to file your taxes for you because you’ll end up paying more taxes since they will be using standard deductions without dependents. Do not sign the return they mail to you, but prepare your own and ask that it be accepted.
Looking for information and the right forms is the hardest part of filing late tax returns. Forms for the years you haven’t filed will have to be obtained. A 2003 form cannot be used with the 2005 return. You must be able to get the specific forms from a local IRS office, IRS site, or with the assistance of a tax professional.
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