You may have believed you didn’t have to file taxes because you didn’t earn enough money or lived abroad. However, most individuals who make a particular amount must still submit taxes. Therefore, you may still owe back taxes if it has been years since you filed or paid your taxes. Additionally, you may be eligible for reimbursements from earlier years.
What Consequences Does Failure to File Taxes Have?
Failing to file their tax returns by the deadline may be charged with a felony. Significant fines and even jail time may constitute punishments.
The government can only press criminal charges against you for tax evasion for a limited period. If the IRS intends to prosecute charges, it must do so within six years after the due date of the tax return. Additionally, a non-filer who voluntarily submits their missing tax return is unlikely to be penalized.
Unintentional tax arrears are a possibility for everybody. A significant sickness or death in the family might cause a person to fail to pay their taxes on time. Once a non-filer has gone several years without filing, they may be tempted to continue to avoid the responsibility. However, if non-filers have not submitted their taxes for several years, they may be subject to harsher penalties and perhaps jail time.
Absence of Tax Filing?
If you fail to submit your tax returns by the deadline, you may be subject to extra fines and interest from when your taxes were originally due. In addition, tax evasion and non-payment may potentially constitute a criminal offense. The IRS recognizes multiple tax evasion offenses.
Any effort to dodge taxes on purpose is punishable by up to 5 years in jail and $250,000 in penalties, according to section 7201 of the Internal Revenue Code.
The government has a deadline for filing criminal charges against you for most tax evasion offenses. If the IRS wishes to pursue tax evasion or associated costs, it must do so within six years, often beginning on the due date of the unfiled tax return.
Instalment payment program
A payment plan is an arrangement with the Internal Revenue Service (IRS) to pay back taxes over an extended period, usually over the course of a few years. You should arrange a payment plan if you feel you can pay your taxes in full by the extended deadline. The IRS will charge no user fee if you qualify for a short-term payment plan.
A program of new beginnings
The Internal Revenue Service (IRS) initiated the Fresh Start Program (Fresh Start Initiative) to assist individuals who unintentionally violated tax regulations. The IRS’s standards for non-repeat offenders are flexible guidelines that may be the best option for eligible individuals.
The IRS Fresh Start Program facilitates the payment of delinquent taxes and the avoidance of tax liens through various payment arrangements. The IRS offers a wide variety of tax debt relief options. All of these are Fresh Start Program components. Most of the program’s modifications involved tax liens, payment plans, offers in compromise, and fees that the IRS cannot collect now.
Due to its adaptability, the IRS Fresh Start Program is an excellent option for those who have accidentally committed tax filing errors. However, despite its several benefits, people have made up stories about what the program can achieve.
You Do Not Need to Solve This Problem Alone
A consultation with an attorney or tax expert can assist you in comprehending your options and determining the best way to safeguard your rights. Additionally, employing a tax expert, such as those found at Ideal Tax, may assist you in negotiating the most desirable outcome with the IRS. These experienced tax experts are intimately familiar with IRS procedures and know precisely what should be done to alleviate tax obligations.