The Wandering Tax Pro explains "What Happens if you do not file your Federal Income Tax Return":
...filing a tax return starts the clock running on the statutory three (3) years that the IRS has to audit the return. The IRS has three (3) years from the due date of a return – again April 15 if filed on time or October 15 if extended – or the date the return was actually filed, whichever is later, to audit the tax return. If you file your return after October 15th the clock does not start until the return is filed.
And perhaps most important, the monthly penalty rate for “filing late” with a balance due is ten times as much as that for “paying late”.
And that's just the beginning, as the post explains in great detail. The two worst downsides: If you have a refund coming, you lose it after three years of non-filing; if you owe, you dig yourself a great big hole will take you years to climb out of.
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
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