CONSEQUENCES OF NOT FILLING A TAX RETURN - WILL I GO TO JAIL ?

You will have instant IRS Problems if you do not file a tax return. The Tax Code has specific time lines or statutes of limitations set out that allow the IRS to pursue nonfilers.

Criminal: Criminal charges can be brought against you only within six years of the date that the tax return was due.

Civil: There are no deadlines but civil penalties can be imposed. The penalties and interest can be assessed on the taxes you owe forever.

IRS policy: The IRS does not usually pursue a nonfiler after six years from the filing due date.

If you owe taxes and do not file a tax return, it is a crime. You can be fined up to $25,000 per year and/or sentenced to one year in prison for each unfiled year.

If you file your tax return and it states that you owe taxes and do not pay them, there is no criminal penalty. Your unpaid taxes will be assessed penalties and also accrue interest though.

Ways the IRS pursues nonfilers include:

• The Computerized Information Returns Program (IRP). This program matches information documents against tax returns you have filed. If there is no information found indicating that you filed a tax return, the IRS initiates a Taxpayer Delinquency Investigation (TDI). You will receive notices from the IRS, then phone contacts or more letters, and finally a revenue officer might start looking for you.

• The IRS has four different ways to notify nonfilers. If you do not respond to one method, the other methods will be tried. o Written request from the Service Center. You will receive three notices within a 16 week period. o Phone call or letter from a taxpayer service representative. At this time, you will be given a deadline to file your tax returns.o Call or visit from a revenue agent or officer. You will be given a deadline to file your returns with the officer or they will offer to help you prepare your returns. (If you still do not file your returns, the IRS can legally prepare them for you.)o Visit from a special agent. If this happens, it means you are subject to a criminal investigation.