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Is there a statute of limitations on not filing? E.g. if you forgot to file a decade ago, and nobody ever came after you, is it better to come clean or let slee
by temp4009 12y ago
Is there a statute of limitations on not filing? E.g. if you forgot to file a decade ago, and nobody ever came after you, is it better to come clean or let sleeping dogs lie?
- nkozyra 12y agoA. I don't think so, and if there were it would be a very long time. B. I don't think this is the thing the IRS forgets about anyway.
- DanielBMarkham 12y agoI don't think there is a statue of limitations for the debt, but there might be for failure to file each years. Best I understand it, they could throw you in jail for "hiding", but they can only come and take everything you own for filing but failing to pay. The temptation here is to let sleeping dogs lie, but I think this just makes it worse. I imagine if you don't make a lot, it's probably not worth their time to chase you, but heck if I'd want to live with that constantly hanging over my head. It's bad enough owing money you can't pay. ADD: For what it's worth, I have a sneaking suspicion that there are a ton of people in this situation.
- gamblor956 12y agoThere is a statute of limitations for the IRS to audit you on a properly filed return (3-6 years, depending on the specific return). However, there is no statute of limitations for imposing back taxes/penalties/interest on income that was never reported. In some circumstances, this can even include later years in which a return was filed, if the unreported income affected the income, deductions, credits, losses, or other tax items in that later year. This is usually not an issue for individuals, as the problem usually arises from carried-over losses or credits that are generally available only to corporate entities.