What happens if you don't file state taxes?

Question

What happens if you don't file federal taxes too?

Answer 1

You don't say what line of work you are in. If you have a completely cash business and exist completely below the radar screen, say you operate a barbershop, do not take credit cards or bank cards and have no other employees, you might go a long time without detection. If you are a contractor for big businesses and get 1099s for your compensation, you likely will be detected within a couple of years. You will get a straightforward letter stating that their records show that you had income but that no return was filed. (If you file federal but not state, know that many states--like California--have entered into tax information exchange agreements with the IRS) If you ignore that letter, you might get a proposed bill based on their determination of your tax liability based only on the income that they know about without allowing for any deductions. They would still have to provide you with notice and an opportunity to dispute their proposed findings. They might instead notice that large amounts of income were not reported on a return for two or more years. That might earn you a visit from a revenue officer, who is a civil collection officer. He or she would provide you with formal notice of the requirement to file returns for the missing years and try to get you to agree to prepare and file the returns within a reasonable amount of time, generally a couple of weeks. Your next visitor, if you still have not filed, would be a special agent of the IRS or state tax agency. He or she will be an extremely friendly, bright and polite person who will start off by reading you your Miranda rights, "as a formality", and then asking the questions that will negate every possible defense that your attorney will be able to think of by the time you are indicted and think to get a lawyer. If you have that conversation, your attorney's plea conference with the prosecutor will be more uncomfortable for your attorney as he is reduced to groveling and whining for a reasonable sentening recommendation in exchange for your plea to at least one of the years on the information or indictment. Or you could just file your returns.

Answer 2

Eventually you will get a notice with an amount owed or refund owed. I wouldn't worry too much. They are usually a couple years behind. I would ,however, file even if it is late. The worst thing that can happen is that you will receive an amount owed with fincance charges and interest. The state is much more flexible than the Federal Taxes an the IRS. I would call a TaxSolutions, Liberty Tax, or H&R Block consultant, they would be able to better assist you. I would be worried if you had waited years or something like that, they could potential acess leans on properties if large amounts are owed. I would only worry if you had a large business or made over the 200,000.00 range.

Best of luc k

Answer 3

If you dont file state taxes, you end up in a federal penitentiary.

If you dont file federal taxes, you end up in a country club facility.

Answer 4

The best person to answer this question is Al Sharpton! He owes 4.5 million in back taxes, yet is invited to the White House quite often!!! He is not in jail and enjoys a luxurious life style!!! I guess you don t have to pay taxes if you promote racism!

Answer 5

You would get a letter from the IRS (or the state) telling you that you didn't file, and probably sending you a bill for what they THINK you owe.

Answer 6

Uncle Sam comes and makes things "even" plus you're not allowed to go out and play with the neighbours kids for a looooooong tiiiiiiiiime!

Answer 7

It takes 8 seconds for YahooAnswers web page to load for me to be able to click on [add your answer] box. thus, is my laptop slow?

Answer 8

the IRS would ketch up with you on a couple of years!