What Happens If You Don File a Tax Return?
IRS problems increase if you do not file a tax return. Statutes of limitations or timelines are allowed by the Tax Code so the IRS can go after nonfilers. Criminal: Criminal charges may be brought against you within six years of the date that the tax return needed to be paid. Civil: There will be no deadlines but civil penalties may be imposed. The taxes you need to pay will be forever assessed with interest and penalties. IRS policy: The IRS does not normally pursue a nonfiler after 6 years from the filing deadline. Not filing a tax return is a criminal offense punishable by one year in prison for each unfiled year and a fine of $25000 each year. If you need to pay taxes and you filed your tax return but did not pay them, there is no criminal penalty. Still, the tax debt is assessed with penalties and interest. How the IRS pursues nonfilers are: • Tax returns you’ve filed are matched against information documents in something called Computerized Information Returns Program (IRP).
