What happens when a person pays taxes (payroll) but does not file at the end of the year????

Answer 1

If the IRS thinks that you should get a refund based on your reported earnings and reported withholding, then nothing will happen. They don't voluntarily give money back to people who don't file.

If the IRS thinks that you owe them money, then they will send you a bill that will include penalty and interest (and they'll wait a year or two for that interest to add up).

Answer 2

If you don't file your tax return, you can lose your claim to any refund that may be due. You have 3 years to claim it from the due date of the return. For example, the 2007 tax returns are due on April 15, 2008. If you don't file your tax return, you will lose the right to claim that refund if your tax return is not filed by April 15, 2011.

Also, by not filing your tax return, the IRS can assess any additional taxes that they believe are due whenever they feel like it. By filing a tax return, you are limiting the time that the IRS can audit you.

Answer 3

As an employer, you are supposed to file forms 940 and 941. If you have made the deposits, but do not file the forms, eventually the IRS will send you a courtesy notice asking for the corresponding tax return.

Answer 4

It depends on whether you owe or not. If you obviously have a refund coming, nothing will happen even though legally you are required to file a return. If your income and withholdings show that you might owe, you'll get a letter from the IRS telling you to file and pay up - if you don't, they'll be contacting you again..

Answer 5

If you don't file your tax return you won't know if your deductions were more than required or less than required. If your deductions were less than required, and you are required to file, then you will pay interest and penalty. If your deductions were more than required, you won't get the tax refund.
Also if you file your tax return, you can get Earned Income Credit and if you have a child Child Tax Credit. That means you can get some money from IRS; it can be an extra income.

Answer 6

IRS will initiate a series of letters requesting the return be filed. This happens whether or not there are prepayments. If there is no response, it will follow up with telephone or, in extreme cases, personal contact from a local office field employee.

Answer 7

The felony themes are, a million. you're required to record except you're making an exceptionally tiny volume of money so technically you're breaking the regulation. 2. in case you owe money then you definitely ought to get replaced with tax evasion As a pragmatic rely nevertheless, in case you do not owe the IRS then they gained't do something. And in case you had taxes taken out of your paycheck you won't owe something. yet you may merely get a reimbursement for the previous 2 years. so which you have forfeited 4 years of tax refunds. that's merely dumb. in case you do owe them money then outcomes and activity will pile up. greater effective to get it dealt with as quickly as you may. As for the tax evasion, which will in no way be a difficulty in case you come to them and get it straightened out.

Answer 8

legally we're suposed to file every year even if you cant pay. but i went 4 years once without filing. just make sure you hold onto your w-2s for the corresponding year for when you do file.