What Happens as a Result of Failing to File Your Taxes?
Regardless of the reason behind why many people fail to file their taxes, it is important to understand what exactly happens as a result of this. The IRS is responsible for millions of people and the taxable income they acquire every year, therefore just because they haven’t acknowledged you for your failure to file does not mean they will not at some point in the future. Tax lawyers in Illinois have seen it time and time again where clients require their assistance in need of obtaining a favorable outcome in their case involving their failed attempts to file their taxes.
Tax attorneys in Illinois want to provide you with some relevant information from Bloomberg Business pertaining to the possible actions that can occur following your decision to not file a tax return for this year, or even those years that have already passed. Below is what generally happens as time goes on in reference to those who decide not to file a tax return.
You may not receive a notice or phone call- A year, or two, or even three without filing a required tax return may go unnoticed by the IRS. Be aware, though, that all W-2’s and tax forms that you receive, a copy is also sent to the IRS. This means they see what you see, however, they may not acknowledge you just yet for not filing due to the millions of people they must monitor. And should you have been entitled to a refund, you no longer would be eligible to receive it after three years of not filing.
Jail time– Depending on the severity of the tax fraud committed, seeing that that is how the IRS classifies the action of not filing, while you may not go to jail, you will be sure to receive some hefty fines held against you.
Required paperwork and fines– Once the IRS identifies you and your lack of filing your taxes, they will send you a bill for all money owed from those taxes, fines, and interest. If you were entitled to any deduction, you must also provide proof of that in a timely manner with the possibility that it will be applied.
While each and every tax payer has a different situation on their hands, knowing the process of what could possibly happen in the event you do not file your taxes can save you the trouble of battling it out with the IRS, having to deal with their harassing phone calls, and even their ability to freeze assets and take your entire paycheck.
Dealing with the IRS is not an easy task, therefore gaining the support and knowledge from an Illinois tax fraud legal representative may be your best option should you have failed to file and are at risk of owing more than you can pay back. Be mindful this tax season, and be sure to get your tax return completed in the given timeframe to avoid any further consequences you may face for failing to do so.
