can the irs charge you money even if you have never filed.how do they know what to charge?
2006-10-02 11:55:26 · 6 answers · asked by yamila s 2 in Business & Finance ➔ Taxes ➔ United States
Many people don't realize that if you don't file a return then the irs files one for you it's call an "RFO" Replacement for original. It's your right to ask and receive these which is what you should do first. They figure all these returns the easiest way, if you had other deductions or a different filing status ect. Then you may not owe and even get a refund. Just be ready to prove it.
2006-10-02 20:03:16 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you received any income that was reported on a W-2, 1099 or other IRS form, the IRS received a copy of the form. They can use that information and the standard deduction to calculate what your return should have been. There are also penalties for not filing.
2006-10-02 19:30:52 · answer #2 · answered by STEVEN F 7 · 2⤊ 0⤋
It sounds like that the IRS has already assessed you for back taxes. You should take the time to file a tax return to dispute the assessment. If you are due a refund, then you have nothing to worry about. However, if you owe, you will still be assessed penalties and interest.
2006-10-02 19:40:24 · answer #3 · answered by Steve 6 · 0⤊ 0⤋
Ah... You are referring to the 'random-audit'. Yes... Sometimes a person does not file a tax-return and get caught with the random audit. If you made very little or will not have to pay, the official statements is "... file..." but it is not required. If you do get the notice-of-audit from the taxation organizations, then just refute it and go from there. They are going from a stance of "... prove it or the fine stays..."; I dealt with this item with the IRS and the State of California. Both lead to refunds, though rather small. Now I just file even if the next refund is minimal.
W.
2006-10-02 18:59:59 · answer #4 · answered by Wyndell R 2 · 0⤊ 1⤋
They know how much you made & how much in taxes was withheld because they also get a copy of your W-2. They also get interest statements from the bank, in addition to other tax information.
Basically the IRS computes everyone's tax based on the information sent to them by employers & banks, etc. Then their computer compares what you file to what they have.
Don't ignore the notice.
2006-10-02 20:04:35 · answer #5 · answered by Dee 4 · 1⤊ 0⤋
they can estimate or can use 1099s & w-2s they have received on you. Of course they can charge you.
2006-10-03 11:11:36 · answer #6 · answered by vegas_iwish 5 · 0⤊ 0⤋