"What happens if I don't file taxes?"
If you're asking this question, let's cut to the chase - if you don't file a tax return it will ruin your day. It's a red flag to the IRS. With electronic reporting being the norm, between 1099's, W-2's, and other information returns, you WILL get caught.
What happens when the IRS catches you?
The IRS will estimate what they THINK your return should look like and then begin to assess interest and penalties. The longer you don't file your return, the more you will owe. They will send you a notice of deficiency and move to levy your wages and place liens on your property.
Even if you don't have the money to pay, it is better to file a tax return without a payment than not to file at all, because...
Intentionally failing to file your tax returns is a criminal offense.
Punishment for not filing tax returns is a misdemeanor, punishable by up to a year in jail and fine of up to $25,000 for individuals and $100,000 for corporations.
If you haven't filed, what can you do?
We have attorneys on staff that can help you navigate this issue and get you into compliance. Your discussions with them are protected by the attorney-client privilege. Only an attorney has privilege with respect to potential criminal matters - not a CPA or Enrolled Agent (EA).
Our team of experts will get your taxes caught up and filed, and fight on your behalf for the best possible outcome. You are still going to owe taxes, and likely penalties and interest as well, however the outcome is going to be better than when the IRS finds you on their own and assesses potential criminal as well as civil penalties.
By voluntarily filing all delinquent returns, you will be in best position to avoid additional penalties and interest, as well as possible criminal liability.
The IRS normally will not negotiate with a taxpayer who is not current on their filings. We can take care of that for you as well. We'll help guide you through.