My in-laws have never, ever filed their taxes-what would happen if the IRS ever found out? Could their be possible prison/jail time?
2007-03-11 09:09:41 · 4 answers · asked by buttrfly0216 1 in Business & Finance ➔ Taxes ➔ United States
It kind of depends if they owe taxes. If they have been paying in withholding, and the withholding is covering their liability (which the IRS is calculating for them on the IRS computer), there's no issue of tax evasion. In fact, maybe the IRS owes them money!
However, if your in-laws are self-employed, own rental property, or have some other form of income that isn't being reported to the IRS, then yes-they're are guilty of tax evasion and could do time at a federal prison.
2007-03-11 09:16:29 · answer #1 · answered by SuzeY 5 · 0⤊ 0⤋
Not likely jail time. If they have paid in more taxes each year than they owe, then there wouldn't be any penalties for not filing, although they wouldn't get whatever refunds they had coming unless they filed.
At some point, if they owe, the IRS will probably catch up to them, and send them a bill for back taxes plus interest and penalties. If they don't pay it, their assets could be seized to pay what they owe.
2007-03-11 09:14:29 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
That depends upon their individual tax situation. If their income is below the limit for filing a return, they do not have to file and nothing will happen.
2007-03-11 09:35:18 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
do they work..... ....
2007-03-11 09:13:29 · answer #4 · answered by by the way which ones pink 2 · 0⤊ 0⤋