what happens when you fail to file taxes?

Question

I filed for 04 but couldnt file for 05. will there be a problem when I file in 06?

Answer 1

IRS charges a Failure to File Penalty of 5% per month for 5 months. So if you are one month late it is 5% more, 5 months late 25% more. You only get the penalty if you owe. If you have a refund, you must file within 3 years of the due date or you lose the refund. If you earned more than $400 self employment income for 2005 or more than $5,000 in wages, you really should go ahead and file.

Answer 2

Yes you could have a problem. What I would do, even if it is late, is to file your '05 return now before the end of 2006. Send a letter with the 05 return stating that you were unable to file and give the reason. With certain reasons you may be able to get the penalties and interest reduced.


IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any tax advice contained in this communication (including any attachments) was not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any tax-related matter addressed herein.

Answer 3

Why couldn't you file in 2005? Your reason may make a difference.

If you don't file for any year that year is open forever; and if you owe penalties and interest accrue until you do file and pay. I had a client who was contacted after ten years; the IRS said he had not filed - it was resolved satisfactorily, but took a lot of time. ( Explanation too lengthy to detail here)

One repercussion for not filing for 2005 is that you will be precluded from filing electronically for 2006. Manual processing can bring your non-filing to the attention of a person, who may pursue it further. Three years after the normal filing date, you will not be able to get a refund, but will still have to pay. For 2005, that is April, 2009

If I can give you some free advice, or answer a question contact me by e-mail.

Answer 4

Penalties and interest if you owed money... can't remember the limit, but after so many years if you were owed money back and you don't file you can't get it back. You have to file 05 before you can file 06....really you should just file 05 ASAP and act like you filed for an extension but it must've been lost in the mail. Returns on extension are due August 15

Answer 5

Unless the IRS shows fraud, or criminal conduct, then it would just cost money, interest and penalties. IF you file for 2006, then the IRS will come to see you about 2005. File the return for 2005, even if you cannot pay the tax.

Answer 6

sooner or later they catch up to you. The law requires you to file even if you don't owe any taxes or additional taxes. There is a penalty for not filing, even if you were do a return. Normally, they don't want you in jail, they want the money, so they will assess the penalty and you will have to pay

Answer 7

you will need to file 05 to be able to file 06, if you are due a refund in 06 but owe in 05 they will use your 06 refund to pay for your 05 bill, but if its not enough to cover they will come after you and garnish your wages for the rest.

Answer 8

if you ended up oweing in 05 yes there will be reprocussions. you can still file now and see if they will take it but you owe money on april 15th. so if you owe they set a date but if they owe you you can take your time i think. talk to a tax advisor for the total low down

Answer 9

I had a friend who didn't file for many years. Nothing happened to him. I always wondered why.

Answer 10

it depends if you had money coming or not - if you did - they certainly don't care but if you OWE you better do something now because their penalties and interest are ridiculous -