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| *Ostroff, Fair and Company>>>United States Taxes |
What happens to people who do not file income tax ? |
IRS will never recieve any form neither w2 nor 1099 that prove you recieve some payment this year If your income is below the filing requirement amount for your filing status, absolutely nothing will happen at all. If you're paid in cash under the table, you have to pray that your "employer" never gets audited. Most businesses that rely heavily on cash -- restaurants and beauty shops for example -- tend to attract closer attention from the IRS and are much more likely to be audited. When that happens, they'll scramble to minimize their tax liability and the first place they'll look is any employees working under the table. When that happens, YOU'RE BUSTED. If you get paid under the table, you can never open a bank account since the IRS will know about your income as soon as the money hits your account. When that happens, YOU'RE BUSTED. If you get paid under the table, you can never buy a car (or anything else) that costs more than $10,000 as all financial transactions of $10k or more are reported to the Treasury Department. When that happens, YOU'RE BUSTED. If you get paid under the table, you can never use credit. As soon as you do, your credit record will reflect your cash flow and when that happens, YOU'RE BUSTED. While it's possible to stay off the IRS radar for a while, keeping up that posture over time is nearly impossible in modern society. You'll be severely constrained as to how much income you'll ever be able to earn and will always be looking over your shoulder for the tax man. Worst of all, if you spend a lifetime avoiding taxes, you'll get ZERO when you retire and apply for Social Security and Medicare. That doesn't sound like much of a life to me. Ask Willie Nelson, it is against the law to not file your taxes. you go to jail for a very long time if you owe your going to get smashed if the amount exceeds 500, if you dont owe and dont file they will not bother you with an audit, and when they do come at you your going to pay triple the amount due to fines and interest, but will not exceed three times the amount owed friend of an irs agent The IRS does get reports from employers and from any institution that paid you interest or dividend income. When you get caught, you will have to pay taxes owed, interest and penalties. If you owe a lot and have been avoiding tax payments for a long time, the US Attorney can also file criminal charges. So you are looking at jail time. Sooner or later they will find you. When they do your employers taxes they will see that you were paid. Not saying it could happen now but if they do they can make you pay it . OR worse end up in prison. |
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