What happens if you don't file your taxes?

Question

If you don't file your taxes for whatever reason, do you get arrested? Fined? I know Marc Anthony JUST got caught for not filing HIS taxes for years, and he had to pay a large fee (although it might have been based on his large income). Any idea?

Answer 1

The correct answer depends. If you have a regular job that takes taxes out on a regular basis, you may be entitled to a refund. In this case, the IRS could care less if you file. You have up to three years to claim a refund of money they owe you. You won't be penalized for not filing. You'll just get your refund later. If you owe taxes, they'll surely be in touch.

Answer 2

If you are required to file a tax return and don't, there are several possibilities on what can happen.

If your income was on a W-2 or 1099, it was also reported to the IRS. They compare those reports to returns filed, and if you didn't file but should have, you'll get a letter from the IRS telling you how much you owe. Penalties and interest will be added to what you would have owed in the first place. Then if you don't pay, the IRS will take some of your assets to satisfy your debt. Criminal prosecution is possible, but not common.

If you didn't file but would have gotten a refund, nothing will happen except you will have contributed your refund to the US Treasury.

Answer 3

I didn't file for almost 10 years (I know, dumb me) and I called the IRS and asked them what I should do. They told me that as long as I didn't owe anything I could still file for the past 3 years. They did not send an agent to my house or send me threats in the mail or even fine me for filing late. I've filed late twice now without any penalty but I think it's mainly because they are more concerned with people in much higher income brackets and people who itemize all sorts of things. If you are a single overworked, underpaid employee and file the 1040EZ (filing at the higher single rate), I don't think you have anything to worry about.

Added:

The government would love for you to forget to file if you have money coming back. Tax evasion is a completely different story. That's not what you are doing here. People seem to be confused about the whole thing but it's not that difficult. If you do owe, you would have to owe a considerable amount AND have assets they could take to cover for it. Realistically, that only happens to people who try to scam the IRS by falsifying their returns.

Answer 4

The IRS helps you out by filling out a worse case scenario return for you. Since they don't know if you have dependents or deductions they can't put them down. This is a sure way to see what your worst tax nightmare bill will be. If you file your own return you put down dependents and deductions and losses that have occured and usually wind up with a refund. Take your pick as to what you like best; pain & suffering or money in your pocket?

Answer 5

It depends on whether or not you are required to file.
Someone who doesn't file taxes on income which is taxable is guilty of tax evasion and this is a federal crime. Depending upon the types of income you're talking about depends on the penalties.

This is a link to some interesting information on the IRS web site so you can get a better understanding of taxes and how they work.

http://www.irs.gov/app/understandingTaxes/jsp/s_cool_stuff.jsp

Good Luck & Bless

Answer 6

you're required to document through the due date of April 17 in case you earned better than $8,450 and/or had any money withheld for federal taxes. in case you assume money back then is not any added penalty. yet in case you owe taxes, then you fairly owe added interest and consequences for not filing/paying on time. In both case, you merely gave the IRS the right to audit ANY tax 12 months go back by using suspected fraud. they think it extra even as human beings do not document on time without sturdy reason (like medical/health issues).you want to bypass to a tax place of work and performance your go back performed now regardless of in case you owe taxes. there are possibilities available in case you do not wait a lot longer. If observing for money back, you could wait yet WHY?

Answer 7

Well, I have first hand advice for you. Let me start by telling you this you can be arrested for not filing, but thats normally not the case. They will normally let it build up high enough, and let you beleive you are getting away with it, then "whamo" they will attach(lean) everything you own, your house,cars,bank account garnish your wages. So, my advice to you is file, and find a way to settle up with the irs. It is so much easier to do it now than later with the"quadruple or more" intrest the tack on top of it. my original $2300.00 has almost cost me $30,000.00 ten years later.....Good luck! pay the tax man. they will eventually catch up to you, when you least expect it...

Answer 8

If you work somewhere and receive a W2 the IRS also gets a copy of that from your employer. They eventually catch you, make you pay and then decide whether you did it on purpose and then arrest you.

Either way you have to pay. You might get away with it for a while but the consequences aren't worth it.

Answer 9

First, You better hope the IRS doesn't monitor Yahoo! Answers. But this is the government...they are going to get their way. So you'll eventually have to pay your taxes plus interest. Jail Time is also a possibility.

Answer 10

If you owe them money they'll eventually find out and go after you. It may not be for years. So they'll ask for their money, the kicker is they charge you interest. Which is a lot worse than paying them right away. If you don't pay that, they can take your stuff and sell if towards your debt. They could end up arresting you if you deliberately trying to get out of paying.