Do you know what happens if you don't file federal income taxes?

Question

Really, don't just say the feds will come get you, if you don't know for sure. Do you have any experience or know anyone who did not file a federal income tax return?

Answer 1

I used to work in the payroll department for a large company several years ago. A couple of our contract employees got caught not filing. Nothing happens, until they catch you. In the case of one of them, had they filed, they would have only owed a few hundred dollars, I don't remember the exact amount, but it was under a thousand. When the IRS did catch up with them, and they did. They accrued back interest, penalties, fees and all that good stuff, that couple hundred ended up over $20,000. Then they start digging. He hadn't filed any since that year... so the same thing started happening from then on up to the current year, of course the fees weren't as rough as the years got closer to present, but still. Eventually I got a notice to withhold payment to him until further notice, which I had to do, they ended up garnishing something close to 50% of his wages, it wasn't pretty. We also have state taxes and he hadn't paid those either so the Fed tipped off the State boys and they were after him when I left the job. PAY THOSE TAXES!! I have been terrified of the IRS ever since.

Answer 2

In the event that you do not earn enough, you may not owe any tax and may not be required to file for a given year. If you have a large tax liability and not filed and not paid the tax.....read on.

You will receive a summons to appear before an IRS agent.
You must be able to explain why you did not file, and verify or dispute the tax claim. You will need any and all records, and be prepared to explain "every single bank deposit", as well as any deductions. They will attempt to arrange a payment plan.
If all else fails and you are found guilty of tax evasion, the IRS can confiscate your bank account and any assets, auto, boat, house, plus garnishee your wages in order to satisfy their claim.

If you totally dispute the claims, you will need a tax attorney and may go to trial.

Answer 3

Eventually the IRS will catch up to you. In the beginning they're very threatening about what they'll do to you, etc. etc. If you haven't filed in a long time, your best bet is to retain an attorney that specializes in this sort of area. They can help you with paying back any money you may owe to the IRS, etc. A neighbor of mine had a similar problem a couple years ago. They lost both their home and business, but did not go to jail.

Answer 4

Eventually they will find out and send a tax bill for payment including interest and penalties compounded daily.
They could confiscate you bank accounts...put a lien on real property.
They could file criinal charges if the amount exceeds 1 million $ or they can prove you purposely tried to hide income.
They cannot do any of those if you make payment arrangements..but even then it can take years to pay off even a few thousand$.

Answer 5

Well, I filed state and federal but have had the Feds file audits on me for the passed few years. I don't make that much and I don't have ridiculous claims/refunds either. (Money hungry pigs). From what I understand, you could be prisoned in a Federal penitentiary for tax evasion but if you sneak across the border you can get a pass! I don't get it. If Coragryph answers you'll get a more honest response.

Answer 6

it really depends.

it's possible that they won't even know. it could be that the person just isn't worth the effort (spending more to get the money than you get in return).

it's also possible that you would get a credit problem until you pay a fee back to the government--the taxes you owe plus something punitive.

it's a very small likelihood that you'll be shipped off to jail. they'd rather have you working as a productive member of society.

Answer 7

Out of several people I have seen happen to them: it hurts their credit score, when you get a job they will have the first cut off your paycheck until you have paid it off completely, something you cannot stop. When you will report your income taxes, anything you get in return, they will keep.
Unless you are earning way too much and live with your parents, I don't see why you wouldn't want to. We get a minimum of 1500 each year, each of us returned.

Answer 8

You don't have to file, if you earn less that the minimum amount required to file. I think that it is $7500. If you make less trhan $7500 for that year, you don't have to file anything.

Answer 9

I READ ABOUT A RECENT WIN REGARDING A MAN NOT FILING HIS INCOME TAXES FOR FIVE YEARS..

HE DID NOT OWE ANY TAXES...YOU PAY ON THE TAXES YOU OWE...SO THE JUDGE RULED IN HIS FAVOR.

IT WAS AN ARTICLE IN THE NEWSPAPER IN LOUISANA..I THINK IT WAS BATON ROGUE IF YOU WANT TO LOOK IT UP....

Answer 10

I believe that the answer is nothing... at least not in the immediate future and through the courts... it is lying on the return that gets you in trouble...