Ask Wesley Snipes. Seriously, the IRS is not to be toyed with. If you have not been filing income taxes, or have not done so for the current year, the IRS levies some hefty penalties against non-filers. You may not be a celebrity, but roofers, pet shop owners, and even students are all legally required to file income taxes, with only a few exceptions.

Some people are not required by law to file income tax. The conditions vary depending on your filing status, age and income. Your CPA and the IRS will have this information readily available if you need to determine your status. Even if you are legally exempt from having to file income taxes, it is often beneficial to do so anyway. An annual income tax statement can verify your income for any organizations needing this documentation, and might even bring you a refund.

Most people don’t file their income taxes because the process is overwhelming. This is understandable. This is particularly true for those who operate a small business, such as roofers. Keeping track of expenditures, deductions and other financial data can be quite daunting. What should be retained as an expense? As an investment? And how to gather the required forms and documents the IRS needs for filing?

Accounting firms are your best resource when it comes to small business tax services. They will be able to analyze any receipts or records you have, and determine what other information is required. The good news is that when done properly, most filers with a small business will usually end up paying a very small income tax or even getting a refund. Your small business tax service will know how to best apply deductions to give you the most advantageous result when compiling your income taxes.

No matter your situation, please file. CPA firms and tax services are the best choices to turn to for just getting it done. Even if you’re late, have not filed for years, or owe taxes, filing now will save you penalties and other repercussions that will eventually happen should you continue to ignore your taxes.

IRS Penalties for Not Filing Taxes

In addition to charging financial penalties, when one does not file income tax, they can find themselves in court, and even jail.

Here are the legal charges that can arise for those who do not file their taxes:

• Criminal Fraud: Also known as tax evasion. Tax evasion is a criminal case, and will be the most damaging of all potential actions the IRS can take. If convicted, the taxpayer will be subject to heavy court-determined fines, imprisonment, or both.
• Civil Fraud: This is taxpayer fraud that is not as blatant as criminal fraud. It can involve falsely reporting income or bogus deductions. If imposed, the penalty is 75% of the portion of tax underpayment resulting from fraud.
• Negligence: This penalty is imposed if any part of a tax underpayment is shown to be a result of negligence. This penalty alone makes the case for having accounting firms do your taxes. The penalty is 20% of the portion of the underpayments resulting from negligence.
• Frivolous Return: A frivolous return is one that omits certain information necessary to determine the taxpayer’s tax liability. It is usually incomplete or made up of nonsense. These types of returns are usually completed as an act of protest. The IRS does not care if you don’t like them, or feel you are exempt from filing your taxes. The penalty is $500 for each frivolous return filed. Choose another way to protest.

If you want to remedy your tax situation as a result of not filing, your CPA in Fort Collins is the person to see. Bring in whatever documentation you do have, and get started before things get worse. Be prepared to be amassed financial penalties for not filing.

Keep in mind that the IRS will opt to work with you when it comes to making up back payments. Between your CPA and the options for payment available from the IRS, the situation is fixable and doable.