What are the consequences of not submitting a tax return?

Question

are the consequences of not submitting a tax return really bad or what

thanx

Answer 1

It could range from no consequences at all to jail time and fines, although the latter is the exception, not the rule. The IRS will usually pursue a delinquent return if they determine there is a likelihood that there will be money owed. If so, they can eventually prepare a subsitute return that will not give credit for additional dependents, deductions and credits. You can always file an original return to replace what the IRS does.

One other consequence is that if you're due a refund you only have three years to claim it--so you would have to file a 2005 return by 4/15/2009, etc.  

Answer 2

You don't say where you are - I am assuming the US.

If you are single and not a dependent, and work as an employee so have social security and medicare taken out, you can make up to $8950 in 2008 with no requirement to even file.  The number increases a little every year- for 2007 it was $8750.  If you had anything withheld for federal income tax though, you have forfeited a refund by not filing.

If you have been working as an employee with taxes taken out, and haven't filed, the IRS would have contacted you if you had owed anything.  If they didn't, then you probably had a refund coming but didn't get it since you didn't file.  You can file up to 3 years late and still get your refund.  Note that if you did owe, it can take a year or more for the IRS to contact you, and penalties and interest will be accumulating all that time.

If you worked and didn't havre ss and medicare taken out, then you are required to file if you make over $400.  If you don't, there will be penalties and interest on whatever you owe, and those can really add up.

Only in rare cases does anyone go to jail for not filing, although that's possible.

Answer 3

It all depends on the amount of tax owed.  If tax is owed then there are late filing penalties and interest, all of which is computed off the amount of tax owed on the return.  If a fraudulent tax return is involved, then expect time in the Slammer.

If no tax is owed AND income is below the amount required for filing, then there is no need to file a return.

Answer 4

It is better to file a return unless your income does not require you to do so. But, even if you don't owe the IRS money you may want to file to receive a refund. Additionally, you may need to show proof of income to purchase a house or go to college or something else that will be important to you. You don't want to be playing catch up with taxes at a time like that!

Answer 5

Uh. . . . .yeah !!!!   YOU COULD GO TO JAIL !!!!!   How's THAT for "serious" consequences ????????????????????   If it WASN'T such a C-R-I-M-E. . . . . .NO ONE WOULD FILE 'CAUSE NO ONE LIKES PAYING . . . .OR FILING. . . .TAXES !!!!!

HELLO-O-O-O-O-O-O-O !!!!!!!!!!!!!!!!!!!!!!!!!!

Edit for gobonzzo:  The amount of "income" you're referring to that would negate the need for filing a return is a mere $2,000.00.  Any income over $2,000.00 for the fiscal year warrants filing a return.  Even indigent people generally qualify for filing a return status!