What factors does the IRS use in filing a return for an individual who is not required to file a return?

Question

If no return is filed, the IRS files for the individual. The amount they file for is then used in a levy for payment. Levy amount 2 1/2 times AGI seem excessive. Really stiff for retirees!

Answer 1

If you are not required to file a return, the IRS does NOT file one on your behalf.  The requirement to file a return is based upon your filing status and income.  Assuming that your income was all properly reported, the IRS would have the same numbers you do and would not be filing one on your behalf if the numbers were below the filing requirement amounts.

And I highly doubt that anyone in history has ever been levied 2 1/2 times their AGI, aside from some of the whack job tax protesters and most of their bill is legal costs and penalties that accumulated over a protracted period of time.  It just ain't gonna happen!

Answer 2

If the taxpayer doesn't file, IRS uses gross income it determines to calculate tax.  The tax computed this way can easily be more than 2 1/2 times the correct amount had the return been filed properly when it was due.  It can be fixed.