Tax Help Info!!!?

Question

I have not filed taxes for the past 2 years and claim 9 on my taxes. I make roughly 60K a year. Can anyone help me out as to what I might owe? What items the IRS can get me for? Can I go to jail? I am not a homeowner but want to get everything taken care of ASAP.

Answer 1

How is it that you make $60,000 per year? Is it through W-2 wages? If so you hopefully had federal and state withholding withheld from your paycheck. What you need to do is either go to www.irs.gov and download the forms for the 2 years that you haven't filed for, or find a local tax preparer in your area and have them prepare your returns. If you are owed a refund (which that will depend on your income, deductions (either standard or itemized), personal exemption(s), marital status, dependents, tax credits, withholdings) then there will be no problem with either the irs or the state. You only have 3 years to file a return for which you are owed a refund, but you are fine since you said it's only been 2 years. If you owe the irs money, you will have to pay the tax and interest and penalties to the irs, and also the state (if you have a state income tax). As long as you file a return, all that will happen is that you will pay interest and penalties on top of tax that you owe. If you don't file though, you could end up pulling an Al Capone and be sent to jail for tax evasion. But since you say you want to get it taken care of, I wouldn't worry about that part. Next time though, file your taxes.

Also, more than likely you need to change the "9" that you have been claiming. I have attached a paycheck calculator to help you determine what you really should be claiming on your W-4 (I'm assuming that's what you claimed the "9" on).

Answer 2

You aren't likely to go to jail - it's possible, but under your circumstances would almost surely not happen. But you will owe a substantial amount both in taxes, and in interest and penalties for underwithholding and late payment.

Take all your paperwork to a CPA and get the returns done and filed - that will at least stop some of the penalties from accruing. If you can't pay all that you owe right away, you'll be able to set up a payment plan with the IRS.

Hard to say what you might owe, since you don't give enough info about your family situation and possible deductions and credits. If you are single and don't have much in the way of deductions or credits, you would probably owe around $10,000 for each of the two years, plus interest and penalties.

If this is from self-employment rather than from an employer, there will be substantial additional amounts for self-employment taxes (social security and medicare) and could be approaching a total of $50K or so by now for everything. Since you say you "claim 9", I assume that's on a W-4 so it's not self-employment though.

Putting it off is just going to make it worse. You'll owe even more by the time the IRS catches up to you. And get rid of that "9" on your W-4 - it's just messing you up for THIS year too.

Answer 3

Get them done ASAP. The sooner you file, the less you will owe due to penalties and interest adding up.

You won't go to jail but the IRS can and will garnish your wages and leave you with next to nothing to live on.

File the returns and pay what you can with each return and then enter in to an installment agreement and stick to it.

Edit: For 2006, if you are single and do not itemize and you had no withholdings, you are looking at a tax bill of over $9000 (plus penalties and interest). 2005 will be higher as you are over a year late.

Answer 4

I would go to a tax preparier and get this taken care of. And you claim 9 that would be a big return. But there is a penalty for not filing but it is not that much.