What's the Big Deal? In the United States, you are required by law to pay income tax to the federal government, or who is more commonly known as the IRS.
It may not be the easiest thing in the world, but it's expected of you every year nonetheless.
But sometimes if you think you might owe the IRS, you panic.
You decide that maybe if you don't file, you won't have the pay them what you owe.
Here's what will happen to you if you don't file your taxes: Penalties: If you owe the IRS, every month that you don't file after the due date of April 15th, you are charged with penalties.
The Failure to File penalty is 5% of the debt, per month up to 25% per year.
So if you haven't filed in several years, what started as a $2,500 dollar debt could very well have snowballed into a debt well over $10,000 dollars, solely due to penalties.
Fines: Legally, the IRS can charge up to $50,000 per year not filed.
That's on top of the Failure to File penalty imposed each month.
Most recently, Wesley Snipes was federally indicted because he was behind on filing his taxes.
He is currently being charged well over $100,000 dollars, just because he didn't file.
  Jail Time: Consequences for not filing can even include serving jail time.
Al Capone was one of the most famous gangsters to ever live.
He ruled Chicago with an iron fist and was responsible for several crimes.
When he was arrested and jailed in 1931, the primary charge was income tax evasion.
He was also charged $50,000 dollars in fines, on top of the $215,000 dollar tax debt that had accrued due to interest and penalties.
  What You Can Do: As you can see, even famous people can't escape the IRS.
In America, no matter who you are, the IRS expects the same of you.
Even if you think you're going to owe, make sure you file.
That can't be stressed enough.
The IRS can't put you in jail for owing them money...
but they can and will arrest you for not filing.
Make sure you stay up to date; you don't want to end up on an IRS-Hitman's Hit List.
Now you have the Smoking Gun...
Use it!