What happens if someone does not file their taxes, what problems could apply to this?

Question

What happens afterwards? This refers to someone who makes minimum wage. What can be done to fix this situation?

Answer 1

It is risky not to file. When you don't file, the IRS sometimes does your tax return for you assuming the worst case conditions. They may send you a bill for tax you owe based on bad assumptions. It may turn out that you really deserve a refund, but because the IRS did the return for you, you may end up owing.

Regardless, if you are due a refund and don't file within 3 years, you will never get the refund. If you owe money and don't file within 3 years, you STILL owe the money plus penalties. If you file late, but within the 3 years AND you are getting a refund, you will NOT have to pay any penalties. If you file late and owe money, you will have penalties thrown in as well.

One last thing, sometimes when you go for a loan, they need to see your tax returns to see if you have income to support the loan.

I can't think of a good reason to EVER not file a return. Why get on the bad side of the government for no reason. You may be forgoing a refund. A lot of people don't file because they owe child support or something. This is a bad reason not to file. Why? Even if your entire refund goes to pay child support, at least you will owe that much less child support. The amount paid is credited to you. If you don't file, you get NO credit and NO refund. You loose both ways. Plus, you make the IRS mad.

An other reason people don't file is because they will owe. This is another bad reason not to file. Even if you owe, at least file the return even if you don't send in any money with the return. The fact that you filed will lessen the impact of the penalties. Besides, if the IRS does your return for you, they may do it in such a way that you will owe more than you really do.

Please do your tax return each year.

Answer 2

If you don't owe any taxes, you are not required to file. If you make minimum wage, you probably don't owe. But, you might have a return. And all you have to do is file the original forms that you were supposed to. If you do owe, they'll tack on a penalty for late payment.

Answer 3

you will be filed penalties, from the irs the first year, if you have a lot of money, you'll be sued for tax evasion, if you still didn't pay, the government will take all your property and assets, and put you to jail for 5 years minimum.