There are lots of misconceptions that go around about what happens if you do not pay your taxes on time. Many people have been told that if they do not file their taxes for ten years the taxes they owe magically disappear and they are off the hook entirely. Unfortunately, for those who are years behind on filing their taxes this is not the case. If it was, no one would pay their taxes leaving our country with less funds than we need to support the government funded programs and systems that we all rely on such as interstates and social security.
While it is understandable and easy to fall behind on your taxes, it is important not to fall victim to the trap of continuing to let your taxes go unpaid. It becomes a snowball affect, the longer you go without paying them, the higher your fees become and the harder it becomes to gather relevant information that may provide you with tax breaks and benefits. While all tax fees and benefits are unpleasant to deal with, not filing your taxes for 10 years or more can result in worse penalties and even the potential to serve time in prison.
There is no time limit when it comes to the collection of taxes. How the myth of waiting 10 years to file your taxes got started is because once you file your taxes, the IRS has 10 years to collect what is owed to them. If you do not file them the statute of limitation never starts. This means the debts you owe are never taken away and the penalties and fees you face only continue to rise and become more severe.
It is also important to note, this only pertains to federal taxes. State taxes, like in California, are given 20 years to be collected once they are filed. It is important to work with a tax professional, such as Enrolled Agent, Sandra King, when you are faced with difficult or complex situations and need further information about your taxes.
It is very unlikely that after filing your taxes you will be able to fly under the radar for 10 years waiting out the costs. This is because once you file it they will keep better track of your finances. You may lose property, have your wages garnished, or experience jail time.
Sandra King Enrolled Agent
Sandra King is an enrolled agent, empowered by The United States Treasury to prepare your personal or business tax filing. While her services are offered nationwide, Sandra King locally serves the greater Dallas-Fort Worth area, including but not limited to Arlington, Bedford, Colleyville, Euless, Fort Worth, Grand Prairie, Hurst, Mansfield, North Richland Hills, and Richland Hills.