Are you concerned about not filing taxes for multiple tax years? It’s important to understand the consequences of unfiled taxes and when it may start to become a serious issue.
The IRS has a process for filing back taxes that are due, as long as you meet certain criteria. The federal government won’t pursue criminal penalties for not filing until three years have passed without filing a return. During this time, interest and penalties will continue to accrue on any taxes owed.
Criminal Charges and Penalties
If you do not file a tax return after three years, the IRS may pursue criminal charges against you. Tax evasion is a serious offense and carries hefty fines, jail time or both. You should also be aware that the IRS can go back to previous tax years and charge you for any unpaid taxes.
If you are behind on filing taxes, it is important to act quickly in order to minimize penalties or potential criminal charges. The best course of action is to file your taxes as soon as you can – even if you cannot pay the taxes you owe.
If you can’t afford to pay the full amount owed, the IRS may work with you to set up a payment plan or offer an offer in compromise (OIC) that can reduce your bill. In some cases, if you are able to file all missing tax returns, no penalties will be applied and you may even receive a small refund. The various factors that the IRS considers when determining an OIC are complex and it is best to work with a tax professional to make sure you get the most beneficial outcome.
Act In A Timely Manner
If you have unfiled taxes, it is important to act quickly in order to minimize penalties or potential criminal charges. In some cases, if you are able to file all missing tax returns, no penalties will be applied and you may even receive a small refund. The IRS can help you set up a payment plan and offer an offer in compromise (OIC) that can reduce your bill to make it more manageable. Don’t wait too long, or else the federal government may pursue criminal charges against you for tax evasion. It is always best to file taxes as soon as possible, even if you cannot pay the taxes you owe.
Ultimately, whether or not unfiled taxes pose a serious threat to you depends on the individual circumstances of your case and how long it’s been since you last filed. It’s important to contact the IRS and discuss what options are available in order to get back on track with filing taxes and avoiding any future penalties.