What happens if you do not file your taxes?
Joyce Galloway Parker
It is much easier and cheaper in the long run to go ahead and file your taxes on time.
The IRS will eventually catch up to you: Not only will you have to pay any taxes you may have already owed, but you will also have to pay penalties, fines and interest.
When you choose not to file your taxes with the IRS, a few things can happen. Each year you have income reported to you through a W-2 or a 1099-Misc, the IRS gets record of it and will expect you to file Form 1040.
And if you do not file?
The IRS will eventually file a return for you. That return is call a
"Substitute for Return" or SFR. You will be filed at the single status and no deductions or exemptions you may qualify for will be counted. Your tax that you owe for an SFR is generally higher than a return you may file on your own. Once the SFR is filed and the tax assessed, the IRS will collect the tax due.
More background info on an SFR
It is a very long and hard process to get it all straightened out, and most of the times this kind of thing results in levies being issued for collections by the IRS. If you owe tax and have not filed in a few years, you can bet you have an
SFR filed for you.
Learn more at wallysworldoftaxes.blogspot.comSource: www.answers.com