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In addition to unclaimed refunds, not filing your taxes can give the Internal Revenue Service unlimited time to audit you as well as result in lost Social Security benefits and possible loan denials.
“The IRS can audit your tax returns for up to three years after the tax filing deadline,” explains Logan Allec, certified public accountant and owner of personal finance blog Money Done Right ...
For example, if you don’t report income that you’re required to report, and it exceeds 25% of the income shown on that year’s tax return, the IRS has six years to audit your return.
Those with incomes of less than $25,000 saw an audit rate of 1.3% in fiscal year 2021, more than triple that of the national average. ... In fiscal year 2021, IRS audits brought in nearly $41 ...
“If there’s a history of mismatches, the IRS will most likely pick you for an audit,” commented Corcoran. “They can open several years of returns to audit. Audits can be expensive and take ...
You can file taxes late and, if you were supposed to get a refund, you might still get it. If you haven’t filed for years and you owe money to the IRS, you may be hit with penalties but the ...
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