When is Non-Filing of Tax Return an Offense
The US tax system relies on voluntarily filing of tax returns. Does this mean you can get away without paying your taxes? The simple answer is - no. The Internal Revenue Service (IRS) is sure to catch up on non-filers, some time eventually. When this happens, you may be facing serious civil and criminal penalties.
However, not all non-filers do so with intentions of evading taxes. It can be just an incidence of negligence or perhaps a misconception that the hassles of filing outweigh the penalties. If this is the case, and you did not intend to commit a crime (for tax evasion is a crime), you need to get in touch with an attorney immediately.
The IRS does not prosecute every other individual who failed to file his or her return. Certain circumstances make it likely that the intentions of a non-filer were not right. It is in such situations that the IRS may pursue investigation and initiate legal action.
Here are a few points that may lead to this.
If your non-filings establish your intention to defraud the tax system, you sure are going to face prosecution. While the IRS would not take up investigations if an individual forgets to file his/her returns a year, it would do this if he/she continues to do the same even after repeated notifications from the authorities.
If the source of your income is not legal, and you did not file your taxes on time, the chances of facing prosecution increase. The objective of this is to make an example out of you to the non-filers.
Financial difficulties may lead to your non-filing. However, in most of such cases, the IRS does not move to prosecute if you were the one who initiated the negotiation. Instead, you may be able to work out a tax settlement plan with the service that does not deteriorate your situation further.
The IRS does not begin an investigation against all non-filers. However, when it does, it can spell serious trouble. You need to get in touch with a tax attorney immediately after you know of any such investigation or charges. In all probability, by the time you come to know about the investigation, the IRS is ready with their case.
Only a competent tax attorney knows the right way to negotiate the matter with the IRS. He/she is your only hope if you want to avoid conviction and penalties for as serious an offense as tax evasion.
However, not all non-filers do so with intentions of evading taxes. It can be just an incidence of negligence or perhaps a misconception that the hassles of filing outweigh the penalties. If this is the case, and you did not intend to commit a crime (for tax evasion is a crime), you need to get in touch with an attorney immediately.
The IRS does not prosecute every other individual who failed to file his or her return. Certain circumstances make it likely that the intentions of a non-filer were not right. It is in such situations that the IRS may pursue investigation and initiate legal action.
Here are a few points that may lead to this.
If your non-filings establish your intention to defraud the tax system, you sure are going to face prosecution. While the IRS would not take up investigations if an individual forgets to file his/her returns a year, it would do this if he/she continues to do the same even after repeated notifications from the authorities.
If the source of your income is not legal, and you did not file your taxes on time, the chances of facing prosecution increase. The objective of this is to make an example out of you to the non-filers.
Financial difficulties may lead to your non-filing. However, in most of such cases, the IRS does not move to prosecute if you were the one who initiated the negotiation. Instead, you may be able to work out a tax settlement plan with the service that does not deteriorate your situation further.
The IRS does not begin an investigation against all non-filers. However, when it does, it can spell serious trouble. You need to get in touch with a tax attorney immediately after you know of any such investigation or charges. In all probability, by the time you come to know about the investigation, the IRS is ready with their case.
Only a competent tax attorney knows the right way to negotiate the matter with the IRS. He/she is your only hope if you want to avoid conviction and penalties for as serious an offense as tax evasion.
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