If you haven't filed a tax return in a few years, the IRS will extract your tax documents from those years and use them to calculate your taxes. They will then mail you a letter known as an appraisal letter detailing the amount of taxes you owe. If you don't file your taxes for years, the IRS can take legal action against you. This may include filing a lien against your property or seizing your assets.
In some cases, you may also be subject to criminal charges. If you face any of these consequences, it's important to talk to a tax attorney or other tax professional as soon as possible. Not filing taxes for several years could have serious repercussions. The IRS can not only prevent you from applying for a passport or a mortgage, but it can also create a substitute for the return against you, charge you for non-payment, or charge you for not filing the application.
You must file your tax returns for both tax years to ensure that the IRS cannot keep your tax refund check. A federal tax lien notice may have been filed to notify other creditors of the IRS claim against your property. The repercussions of not filing a tax return depend on whether you have to pay taxes or if you are owed a refund. If you filed a timely tax return but didn't pay any taxes due when it was due, the IRS will likely impose a penalty on you.
You may think that there is no way to file all your back tax returns, let alone pay ten years of due taxes, plus penalties and interest. They can answer your questions and help you identify the best way to process your unfiled returns. You may receive alerts from the IRS about unfiled returns and simply place them in a pile of unread emails, thinking that you will process them later, when you have time and energy. As a result, you'll have to pay as much tax as possible and, at the same time, pay the associated penalties for not filing on time or paying your taxes, in addition to any interest you've accrued.
If you discover that there are extensions from previous years that could affect the tax return you have already filed, you can always modify that tax return. Another important thing to remember is that if you were single during those years without filing a return and are now married, your spouse's tax payments can be used to pay your obligations if you now file a joint return, and that situation is hardly conducive to marital happiness. In particular, the IRS can find out if someone hasn't filed their taxes through third-party reports. If you're concerned about criminal prosecution, the IRS has 6 years from the day you didn't file a return to prosecute you.
The fact is, if you don't file a request for your refund, you can also issue a check to the government to get your refund. In some cases, you may still have to file a return even if you earned less than the minimum filing amount. You can also get an automatic six-month extension if you file Form 4868, as long as you file it on or before the tax-filing deadline.