Taxpayer asks:
I have been cheating on my taxes for a number of years and I never got caught. This year I got a letter from the IRS that they are denying a bunch of my deductions unless I can prove that there real. I can’t. I’m worried because I have done this for longer than they are asking. Can they make me pay for all of those years?
Taxgirl says:
Before I even begin, I have some seriously important advice for you: get yourself to a tax pro, pronto. I’m not sure what stage you’re at in the process – it sounds like you’ve just received a Notice of Deficiency but it’s highly likely that the Internal Revenue Service (IRS) will ask for proof that you’ve filed for other years. You need competent representation.
As to your specific question, it really depends on what you’ve done. The statute of limitations for the IRS to assess tax is usually three years from the date of filing – they have ten years to collect the outstanding tax. There are exceptions to the three-year rule if you have failed to file, committed fraud, willfully evaded tax or grossly underreported (usually 25% or more).
I don’t believe in panicking over tax mistakes, those can be fixed. But it sounds like you’ve engaged in a pattern of behavior that could be considered willful. Don’t get into further trouble. Get it sorted out now.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
You should go to jail for cheating on your taxes!!!
I disagree with Terry frankly jail for anything but gross tax evasion is a bad idea. (Richard Hatch should be in jail) but I do agree one should pay ones proper tax. Kelly you suggest a Tax pro, I think this person needs a lawyer, and a Tax pro. The Lawyer to protect this persons rights and the Tax Pro to sort out the properness of any of these deductions.
Greed is a powerful emotion that causes many to cheat on their taxes. If greed was your reason, shame on you.
If it was due to moral objections you have with the tax laws and how the government spends your tax dollars, then I commend you. It has been said that it is our duty to ignore unjust laws. I have never cheated on my taxes but if I did, I would have a moral foundation to base my decision on.
Even though you would be morally correct for not paying your taxes that go to support lazy mooches on welfare, it would still be illegal but it would be just. Not paying your taxes so you can afford a new Hi Def TV or a new wardrobe is another story. Any taxes you don’t pay for moral reasons could be used either for your families survival (a very moral reason), if needed, or given to causes that you believe in instead of causes that Uncle Sam believes in. That way you maintain the moral high ground and remain just. You may still go to jail but you did what you thought was right.
My guess is that you were just greedy and wanted the Hi def TV.