I haven't paid any taxes for 5 years now. The problem is I don't have anyway of paying the taxes I owe. What do I do? I want to make things right but if I go to them and say I don't have any money what happens then?
2007-06-07 13:49:29 · 16 answers · asked by reputfindin 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Unlike most of the posters here before me, I am only going to give usable advice and not make snide comments or judge you.
The first thing you need to do is file all the returns that you haven't already filed. Failure to file a return is punishable by jail, inability to pay is not. Where the return asks if you want to include penalties and interest, mark the box to let the government figure that one out. Get them out in the mail as soon as possible, without payment if necessary.
When you know how much you owe (before penalties and interest), start saving as much as possible to pay. You will get a notice from the IRS for payment, probably within a month. Contact them and set up a payment schedule. Contrary to what most people believe, the IRS will work with taxpayers and not just take everything. As long as you make the arranged payments, you should be able to avoid garnishments and levies.
Finally, make sure everything is in writing. If anything seems to be going wrong at any point, consult with a good tax attorney or tax accountant for professional help. Either one will cost you, but beats losing everything to the IRS.
2007-06-07 14:13:10 · answer #1 · answered by Brian G 6 · 2⤊ 0⤋
First, were you required to file a tax return at all?
If you were an employee issued a W-2, and the IRS believed you had taxes owed, you would have heard from them. So, either you did not have a W-2 issued to you, or you earned below what the IRS believes is going to generate a tax liability.
First, gather up your income documents. Go back to the first year you didn't file. Can you research this yourself? If you think you are up to it, all the relevant information is on irs.gov. You can look up "Pub 17" for each of the tax years. It has all the information necessary to file an individual tax return, with rare exceptions.
For the years you were required to file, print out the forms from irs.gov and send them in. If you owe but cannot pay, well your just going to have to find a way to pay the taxes. The longer you wait, the more penalties and interest will accrue.
The IRS isn't going to throw you in jail, but they will persist in demanding that you pay your taxes. Which is only fair.
2007-06-08 12:59:26 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
You need to contact the IRS. The truth shall set you free. They will likely set up a payment plan for you if you can plead your case well enough. I'd probably contact an attorney to help you out, really. But, if you have no income they may garnish your future wages. That's in ordter to recover all of the taxes that you owe from the last 5 (unpaid) years.
By the way, it is illegal, you know. I know a guy that was arrested for tax evasion. Seriously.
2007-06-07 20:54:29 · answer #3 · answered by Shibi 6 · 0⤊ 0⤋
Get yourself a tax attorney.
If you have any source of income the government will find you and make you pay. It is better to go to them first, then have them search you out. They are a lot more lenient with the repayment plans these days than what they used to be.
Call and make an appointment with a tax specialist today.
2007-06-07 20:52:27 · answer #4 · answered by jmrob29 4 · 0⤊ 0⤋
Contact the IRS and work out a payment plan. They'll be more than happy to work with you to set the record straight. I also agree with jmrob29 to contact a tax attorney. They will probably be able to work out a better deal for you in getting some of the interest and penalties reduced. It'll be worth the money in the end.
The IRS is not out to "get you." They'll be more than happy to help you fulfill your obligation without putting you over the coals.
2007-06-07 21:08:42 · answer #5 · answered by RopeResQ 2 · 1⤊ 0⤋
Well sorry to say but your up a creek here, why did you wait so long to try to make things right why not make a payment plan the first year? They are not going to be very forgiving being it you waited 5 years! They don't care if you are broke they want there money and if you call them you better be able to offer them something a month even a small amount is better than nothing, it shows you are trying...either that or you change your name and go on the run...but I suggest you try option #1.
2007-06-07 20:53:30 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Certainly there are many people being enlightened about taxes everyday, Let me suggest you read this posting about taxes then go to the website it references that provides an in depth perspective on taxes. I personally would probably find a good CPA to work with that has a background job history with the IRS. I've found that they have a good handle on what to do and how to go about it.
2007-06-07 21:03:00 · answer #7 · answered by Stormy on the border 2 · 0⤊ 2⤋
We have handled hundreds of similar cases over the years. Please read the detailed page and get some good solid information on how to handle your tax problem. Forget the scare tactics. It can be resolved without a great deal of trouble.
2007-06-08 20:06:20 · answer #8 · answered by taxman94066 2 · 0⤊ 0⤋
Go to jail! You get a free meal and room and board! just make sure you dont drop the soap! and just out of curiosity, why the hek would you be on the computer talking about not being able to pay ur taxes when you could be out making money with a JOB and be atleast trying to pay ur taxes!
2007-06-07 20:55:18 · answer #9 · answered by SwimloverA 2 · 1⤊ 3⤋
They will set you up on a payment plan.
This is not great but better than having them come to you..because if that happens they can and will garninsh your wages or seize any property that may be in your name.
Good luck!
2007-06-07 20:52:51 · answer #10 · answered by brownieleslie 3 · 1⤊ 0⤋