Consequences for the Arizona taxpayer with unfiled income tax returns
Many Arizona taxpayers who call me for help, have a few years of un-filed federal and state income tax returns.
Most will be worried about whether they can be arrested and sent to jail. They have seen the stories about Wesley Snipes and other famous types who are currently residing in a federal prison for similar offenses.
The good news is that the IRS typically and as a matter of internal policy will not prosecute the taxpayer who files their returns voluntarily or in other words beats them to it. Visit the IRS.gov website for information about this policy.
Obviously, prosecution is not the easiest way for the IRS to collect, or they would do it to everyone with a late return. It would seem that the prosecution of a few high profile cases would be more cost effective. Fear trickles down.
Prosecutions of the "rest of us" do occur however, and much more often than one would think. There are many "average joes" whose careers and families have been lost while they sit in jail as a result of unfiled returns.
Therefore, the non filer should get the returns prepared and filed as a first step. If the IRS does decide to prosecute, it usually won't lose.
Not only does the non filer risk jail, he or she also risks the loss of tax refunds, lost earned income credit, lost social security benefits, and increased debt as a result of penalty and interest add ons.
I can help a taxpayer who hasn't filed for years to prepare the returns even if they are missing documentation, file them properly, and then find the best way to deal with the debt, all while protecting the attorney client privilege.
If you have un-filed tax returns, call Michael S. Anderson, an experienced Arizona tax controversy attorney at 480-507-5985 to discuss your situation for free.
