What should you do if you haven't paid your taxes in 8 years?

Question

I have a friend who hasn't paid taxes in 8 years. What kind of advice should I give them?

Answer 1

File all missing tax returns and pay any tax due. This is a little obvious, don't you think?

Answer 2

Judy is right. The question is how far back do they have to go when they decide to surface. Your friend should consult a tax advisor who specializes in multiple year non-filers. For instance, there is no statute of limitations on collecting taxes for years in which no return was filed, but the criminal statute of limitations is 6 years from the due date. As a practical matter, if your friend files his back returns accurately for the last 6 years, even without payment, he likely has taken the threat of criminal prosecution off the table. Then it's still a matter of negotiating a way to pay some or all of the back taxes. As several answerers noted, he might be losing out on refunds for some of those years.

Answer 3

It depends on whether they had enough income to be required to file for those years. If they did, then they need to file.

If they were owed a refund, then they've lost anything before the 2003 tax year, and in a few more weeks, will have lost their 2003 refund too. And if they owed money for any of those years, the interest and penalties on what they owe keeps mounting.

Answer 4

Oh, your friend is in a lot of trouble. Your friend should contact his/her accountant or go to nyc.gov and then go to the Internal Revenue Services Site for more information. I hope this helps.

Answer 5

leave the country, change your name, witness protection, I'm sure he doesn't want to go to prision for tax evasion, unless he is entitled to a refund, then it could be to his advantage.

Answer 6

win the lotto! lol