The thing is she has not filed taxes in 10 years. What kind of trouble could she be in if she decides to file for this year?
2006-09-13 10:55:21 · 6 answers · asked by kryptonnite2000 3 in Business & Finance ➔ Taxes ➔ United States
The outcome will depend on what IRS knows she had earned.
She is allowed not to file federal income tax if she had made less than a certain gross income requirement. The minimum amount depends on her age, marital status and number of dependent.
IRS gets to find out what a person earned each year from two sources: W2 filed by your employer and 1099 filed by your banks.
If IRS doesn't have W2 or 1099 with her social security number in the last 10 years, she might be okay. If they have found either W2 or 1099 that belong to her, then after her filing this year IRS will make the match and would wants to settle old scores.
Essentially she will be asked to "help" IRS figure out what amount of tax she should have paid. If her tax is higher than the amount withheld, she will be asked to pay tax, interest, penalty and (unlikely event) jail time. Otherwise, she will receive a refund. If she had W2s, most likely tax has been withheld and she wouldn't owe anything. If she had lots of 1099s (for interest and divident earnings), then she probabily owe some tax.
State and local tax is a whole story.
The downside for not filing is that she will never be able to claim social security and Medicare benefits when she reaches the retirement age.
2006-09-13 11:31:12 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
The really strange thing about these type of cases is that the IRS frequently owes money to the taxpayer due to withholding and refundable credits. I just did an 11 year delinquent filer so she will by no means set a record but she will very likely not get a refund for more than the last three years. Go see a tax professional.
2006-09-13 11:03:21 · answer #2 · answered by ? 6 · 2⤊ 0⤋
There are a number of factors you did not mention that affect the answer. Any refunds due from more than 3 years ago can no longer be claimed. Any year her income was less than the standard deduction + personal exemptions she could have claimed, she was not required to file anyway. Unless she actually owed the IRS, it is not uncommon for them to grant amnesty to taxpayers who come forward on their own. If they find you first, you are in trouble.
2006-09-13 12:39:05 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
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2016-11-26 21:55:52 · answer #4 · answered by cootes 4 · 0⤊ 0⤋
The IRS probably will get her for not filling, which by the way may audit her because they always find a way to screw you up. Ask her to speak with a tax attorney before she even files so the ride will be least bumpy.
2006-09-13 11:14:30 · answer #5 · answered by Engonos 4 · 0⤊ 0⤋
Well, she might not be required to file, depening on how much she makes. If she makes less than 8200 a year and files single she doesnot have to file.
2006-09-15 11:18:12 · answer #6 · answered by Mommy to Be 2 · 1⤊ 0⤋