What You Should Know About Unpaid Tax Returns

Are you aware of the repercussions of not filing your tax returns? Not filing your taxes is a felony. You may be fined up to $25,000 a year if you do not file. You could also be sentenced to prison for one year for each year you don't file. So even if you owe taxes and can't pay them, file your return!

Nonfilers are found with the computerized Information Returns Program. To see if you filed, the system matches tax returns with W-2s. A Taxpayer Delinquency Investigation is begun if a return is not found. They'll find you and get an explanation why you didn't pay your taxes. You will be served a notice. You will receive even more letters and phone calls if you don't respond to the notice. Don't think that because it has been a number of years since you've filed taxes and you have not gotten word from the IRS, that you are getting away with it. The IRS will find you eventually.

Methods the IRS utilizes for notification:

• Notices
• Letter notifying you of deadline or a telephone call
• Visit or phone call from an agent who will also give ou a deadline
• Visit from a special agent for criminal investigation

You don't wish for the IRS to file your taxes in your stead because you will end up paying higher taxes since they'll be utilizing standard deductions without dependents. Prepare your own return and ask that it be accepted, instead of signing the return they mail to you.

The hardest part of filing late tax returns is finding the right forms and looking for the information you need to accomplish the forms. Forms for the years you haven't filed may have to be obtained. A 2003 form cannot be used with the 2005 return. Specific forms may be obtained from the IRS website or local office, or from a tax professional.

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