###Consequences of Not Filing a Tax Return - Will I go to Jail?###
You will have instant Irs Problems if you do not file a tax return. The Tax Code has exact time lines or statutes of limitations set out that allow the Irs to pursue nonfilers.
Criminal: Criminal charges can be brought against you only within six years of the date that the tax return was due.
Civil: There are no deadlines but civil penalties can be imposed. The penalties and interest can be assessed on the taxes you owe forever.
Irs policy: The Irs does not usually pursue a nonfiler after six years from the filing due date.
If you owe taxes and do not file a tax return, it is a crime. You can be fined up to ,000 per year and/or sentenced to one year in prison for each unfiled year.
If you file your tax return and it states that you owe taxes and do not pay them, there is no criminal penalty. Your unpaid taxes will be assessed penalties and also accrue interest though.
Ways the Irs pursues nonfilers include:
o The Computerized data Returns program (Irp). This program matches data documents against tax returns you have filed. If there is no data found indicating that you filed a tax return, the Irs initiates a Taxpayer Delinquency Investigation (Tdi). You will receive notices from the Irs, then phone contacts or more letters, and ultimately a wage officer might start looking for you.
o The Irs has four distinct ways to familiarize nonfilers. If you do not answer to one method, the other methods will be tried.
o Written request from the aid Center. You will receive three notices within a 16 week period.
o Phone call or letter from a taxpayer aid representative. At this time, you will be given a deadline to file your tax returns.
o Call or visit from a wage agent or officer. You will be given a deadline to file your returns with the officer or they will offer to help you get ready your returns. (If you still do not file your returns, the Irs can legally get ready them for you.)
o Visit from a extra agent. If this happens, it means you are subject to a criminal investigation.
Consequences of Not Filing a Tax Return - Will I go to Jail?
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