taxes questions?

Question

just curious, what's the penitly for not filing you taxes for one year?
and how do some poeple get away with not filing taxes ever.
i heard something about not having to ever pay taxes because it's a goverment thing, and it's not in the constitution.

Answer 1

What to do if You Haven't Filed Your 2005 Return

IRS TAX TIP 2007-17


The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund.

There are several reasons taxpayers don’t file their taxes. Perhaps you didn’t know you were required to file. Maybe, you just kept putting it off and simply forgot. Whatever the reason, it’s best to file your return as soon as possible. If you need help, even with a late return, the IRS is ready to assist you.

Here are some things to consider:

• Failure to File penalty. If you owe taxes, a delay in filing may result in a "failure to file" penalty, also known as the “late filing” penalty, and interest charges. The longer you delay, the larger these charges grow.

• Losing your Refund. There is no penalty for failure to file if you are due a refund. However, you cannot obtain a refund without filing a tax return. If you wait too long to file, you may risk losing the refund altogether. The deadline for claiming refunds is three years after the return due date. For example, the last day for claiming a refund for your 2003 tax return will be April 17, 2007.

• EITC. Individuals who are entitled to the Earned Income Tax Credit must file their return to claim the credit even if they are not otherwise required to file.

Whether or not you must file a tax return will depend upon a number of factors, including your filing status, age, and gross income.

For more information on how to file a tax return for a prior year, visit the IRS Web site at IRS.gov, call the IRS Tax Help Line for Individuals at 800-829-1040 or visit your local IRS office.


What If I Don't File Voluntarily?
The IRS is taking enforcement steps for those who repeatedly choose not to comply with the law. IRS employees will prepare returns when taxpayers do not file. The returns prepared by the IRS might not give credit for deductions and exemptions a taxpayer may be entitled to receive. Bills will be sent to those taxpayers for the tax due, plus penalties and interest.

People who repeatedly don't comply with the law are subject to additional enforcement measures..

Answer 2

If you have a refund coming but don't file, there aren't any penalties.

If you owe, there's a late-filing penalty, usually 5% for each month or partial month that you're late. If you are over 60 days late, the minimum penalty is the smaller of $100 or 100% of the tax owed.

There is also a penalty for failing to pay on time, and additional penalties depending on circumstances.

This is, of course, in addition to paying the taxes owed, plus interest.

Not filing has financial penalties, and can also lead to criminal prosecution and prison.

Some people work "under the table", getting income that isn't reported, and that's how they get away with not filing. If they do get caught, and many do, then penalties can be substantial. Some get away with it - some people rob banks too and get away with it - doesn't make it a good idea.

The stuff that's put out by tax protest organizations about income taxes not being legal isn't true - don't fall for it. This has lost in court each time it's been heard, and there are mamy of these protesters in federal prisons because of their failure to file returns. It IS in the Constitution, by the way.