what kind of penalty can someone get for not doing there tax return for like 4 years.
2007-12-19 14:28:54 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
File now, eventually IRS will send you a notice that if you don't file they will file for you, if you haven't filed your 2003 return you won't be getting your refund if you had one coming, file your 2004 return before Apr 15, 2008 to be able to claim your refund if one is due. Here is a Penalty Code information from the IRS website.
Penalty Code Explanation
01 Filing and Paying Late – IRC Section 6651
We charged a penalty because you filed your return late. If you filed within 60 days, we charge $100 or 100% of the tax due, whichever is smaller. If you filed more than 60 days late, we use the number of months. We count part of a month as a full month. If you disagree with this penalty, see "Removal of Penalties" in this notice. To avoid this penalty in the future you should file your returns by the return due date.
02 Underpayment or Late Payment of Estimated Tax – IRC Section 6654
We charged a penalty because you did not pay a proper quarterly estimate of your tax. For more information, see Instructions for Form 2210 or Publication 505, Tax Withholding and Estimated Tax.
04 Dishonored Check – IRC Section 6657
We charged a penalty because your bank didn't honor your check. For checks of $750 or more, the penalty is 2% of your check amount. For checks of less than $750, the penalty is the check amount or $15, whichever is less. If you disagree with this penalty, see "Removal of Penalties” in this notice.
2007-12-19 14:48:25 · answer #1 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
Penalty for late filing of 5% per month up to 25% of the total debt. Penalty for late payment of .5% per month plus interest at a rate that adjusts quarterly but is currently 8% per annum.
If you fail to file a return when ordered to by the IRS, you could be prosecuted for tax evasion. That's an extreme case for the worst of the scoff-laws though. They'd rather see you earning money to pay your debt than rotting in prison while they wait for their money.
That's if you owe. If you have a refund coming there are no penalties. However you only have 3 years from the filing deadline to claim any refund due you. Most likely if you have not filed in 4 years, the IRS thinks you are due a refund. They will happily keep it if you don't file; you MUST file in order to get it.
2007-12-19 22:40:01 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If they have refunds coming....no penalty from the IRS. Some states still hit you with a failure to file penalty even if you have a refund coming.
If they owe...penalties and interest increase the amounts due greatly. They may have their wages garnish and/or their property seized.
2007-12-19 22:38:13 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
If you owe money then you can pay taxes to include penalties, fines and interest. Contact the IRS and make payment arrangements.
2007-12-19 22:40:14 · answer #4 · answered by Gary 5 · 0⤊ 0⤋
jail time possibly and a fine. BIG fine
2007-12-19 22:36:12 · answer #5 · answered by my_account8 3 · 0⤊ 0⤋