Not Filing a Tax Return Affects You

You will have big IRS problems if you do not file a tax return. Statutes of limitations and timelines are provisioned by the Tax Code so the IRS can go after nonfilers.

Criminal: If you are found within six years of the date that the tax return was due, you will be subjected to criminal charges from the IRS.

Civil: Penalties and interest will be increasing on your tax debt forever because civil penalties can be demanded from you without a time limit.

IRS Policy: Nonfilers are often not pursued after six years from the tax return's deadline.

If you owe taxes and do not file a tax return, it's a crime. You can be sentenced to 1 year in prison for each unfiled year or fined up to $25000 a year.

If you owe taxes and you filed your tax return but didn't pay them, there is no criminal charge. The unpaid tax will accumulate interest and penalties, however.

Nonfilers are pursued through:

• A software known as Computerized Information Returns Program (IRP) will match information documents against tax returns you have filed. A Taxpayer Deliquency Investigation (TDI) will be initiated if no filed tax return is found. You will start receiving IRS notices, phone calls, and missives until ultimately a revenue officer will start looking for you.
• If you do not respond to 1 of the four ways employed to notify nonfilers, others will be tried:
  • A Service Center written request. Three notices in a 16-week timeframe will be served to you.
  • A taxpayer service representative will contact you. At this time, you'll be provided with a deadline to file your tax returns.
  • A revenue officer or agent will call you or pay you a visit. You'll be given a due date to file your returns with the officer or they will offer to help you prepare your returns. (The IRS can do your tax returns if you still don't file them.)
  • Visit from special agent. If this happens, it means you are subject to a criminal investigation.

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Originally posted 2007-12-17 04:16:28. Republished by Blog Post Promoter

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