The IRS can charge you penalties and interest for each month you don't file a return and you don't pay the taxes you owe. In addition, if you don't file a return within three years of the due date, you may lose any refund due to you. If you don't file your taxes for years, the IRS can take legal action against you. This may include filing a lien against your property or seizing your assets.
In some cases, you may also be subject to criminal charges. If you're facing any of these consequences, it's important to talk to a tax attorney or other tax professional as soon as possible. You can also choose to reach a settlement agreement or any type of income tax forgiveness that may apply to you. Criminal tax prosecution isn't common, but it's a possibility if the IRS believes you've been deliberately evading tax laws.
You might think that there's no way to file all of your overdue tax returns, let alone pay ten years of taxes due, plus penalties and interest. The most likely outcome would be that the IRS will charge you for failing to file or pay, which entails a 5% penalty depending on the time elapsed from the deadline for your tax return to the date you filed it for each month that the tax return is delayed, up to a maximum total penalty of 25%. If you don't file your tax returns, you could face penalties and interest from the IRS starting from the date you filed your taxes. As long as you haven't committed tax fraud or evasion, you can file your pending returns and make arrangements to pay your tax debt.
You may have thought that you didn't have to file taxes because you didn't earn enough money or other extenuating circumstances, or you may have simply forgotten to file your taxes. These increase the longer they go without reporting or paying taxes, but they are limited to 25% of the taxes due. You can re-declare those tax years and include any deductions or exemptions, reduce taxes due, and reduce interest and penalties. The repercussions for not filing a tax return depend on whether you have to pay taxes or if you are due a refund.
An SFR may have been filed for several tax years, the tax may have been settled, and your account may be in the process of being collected. The IRS requires taxpayers using these programs to file all delinquent tax returns, and you may need the help of a tax professional for this process.
Leave Reply