Maybe there’s another world, another reality, where people can just not file their taxes to the Internal Revenue Service and everything works out just fine. But in our world, not filing your taxes is definitely a problem that will cause the non-filer to suffer many headaches.
Before we go any further, we want to remind everyone that you should always file your taxes on time if you are able. And that’s because if you don’t file your taxes, you could be subject to a bevy of penalties.
If you knowingly don’t file your taxes, that could be considered a criminal offense — so not only would you be on the hook with the IRS, you could also be looking at criminal penalties and a criminal record. Also, the IRS could charge interest and penalties on the taxes that you owe for the amount of time it takes them to prosecute your case. So if you don’t file your taxes and then it takes the IRS three years to complete your case, you could owe three years worth of interest and penalties on those unpaid taxes.
Of course, there are also limitations on how the IRS can process a case like this. They have to prove their case, and during the entire process, you have your rights. You may need an attorney to help you during the process, but if you communicate effectively with the IRS, you could reach a compromise that alleviates the entire situation.
Remember: the best way to avoid all of this is to pay your taxes if you are able.
Source: FindLaw, “What to Expect If You Don’t Pay Your Taxes,” Accessed Dec. 6, 2016