Articles Tagged with failure to file

The Most Common Criminal Tax Violations
The IRS reported 2,672 convictions for criminal tax violations in the 2016 fiscal year. While criminal tax charges are not common, the penalties —which can include jail time — are severe enough to cause any taxpayer to be concerned.

Most criminal tax penalties can result in a five-year prison sentence and $100,000 fine. You can also be charged with civil penalties for the same violations, and you may have any professional licenses revoked.

Common Criminal Tax Violations

What Are the Penalties for Failing to File IRS Tax Returns
Timely filing of IRS tax returns is always preferable to missing deadlines and facing tax return penalties for doing so. Failing to file tax returns leaves you liable for some potentially expensive penalties. Depending on how late, the amount of taxes involved and how many years of returns are delinquent, the consequences can be quite severe.

Here is a look at the penalties for failing to file tax returns:

  • Failure-to-file penalties begin after the April 15 deadline and accrue at a rate of 5% of the amount owed, per month or part of a month up to a maximum of 25%.

Can I Go to Jail for Failure to File Tax Returns
Failure to file tax returns can be classified as tax fraud by the IRS. While that term does manage to make it sound much more serious, failure to file by itself doesn’t often result in jail time.  Still it’s not impossible—just ask Wesley Snipes! Usually though, the government wants taxpayers earning money so it can collect those taxes. Sending non-payers to prison isn’t going to facilitate that.

The federal or California state government would have to be convinced that your failure to file taxes was intentional before considering something as severe as a jail term. Failure to file over many years, coupled with other bad conduct such as hiding assets, for example, could be subject to criminal penalties including imprisonment and/or fines. In lesser cases, you are more likely going to be liable for back taxes and civil penalties, plus interest.

Failure to File Tax Returns and Failure to Pay

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Are you behind in filing your tax return? If you have not filed a tax return for one or more years, you could be facing some steep penalties and interest on your past due tax returns and payments. Penalties for failure to file and interest on back taxes can quickly becoming a large financial burden. Consider this information from our IRS tax specialists at Brager Tax Law Group to limit your penalties for failure to file and reduce your debt to the IRS.

IRS Tax Penalty for Failure to File

First of all, if you do not owe taxes, failing to file by the deadline is not penalized by the IRS. It is only when you owe taxes and do not file a return by the deadline that you can be penalized. The standard IRS penalty for failure to file is charged at the rate of 5% per month up to 25%. However, if fraud is involved, the penalty can be significantly higher at 15% per month up to 75% of the taxes owed.