April 15th suddenly jumped onto the horizon out of NOWHERE and I have to file a Partnership return. I didn’t make anything last year so I don’t owe anything, and this form is just too convoluted. If I don’t file, what will happen? Will I be arrested?
Interestingly enough, my dad actually runs a business where he negotiates to the IRS for people who decided it would be in their best interest not to file for years upon years (various reasons: tax protesters morons, simply couldn’t afford to pay the balance, too dumb to understand the forms, too lazy to pay H and R Blcok the 60…it goes on and on). He does this for mostly individuals, but each year there are more and more corporations, trusts, partnerships, etc. To give you an idea of what will happen- particularly since it’s a business: nothing will happen to you this year- nothing more than a few annoying letters. Next year: same. But, after a few years, your penalties and fees will stack up, oh- and the IRS will estimate (always too much) how much they believe you owe. Before long it ads up to rediculous porportions, to where you owe tens of thousands of dollars. Then you hire my dad on a $5000 retainer, and at $250 an hour. Come to think of it- don’t file. I need a new car.
…stupid spelling errors…
I’m not crazy about them either, but the whole process isn’t so bad when you can do it online and the program can extract most of the information from last year’s return. Of course, I’m just using an individual form, and I don’t have any unusual circumstances, but it’s great only taking 20-30 minutes filling out state and federal returns.
Hear the words of experience: File and make damn sure you have a copy of your return for your records.
It took me over 15 years to get the IRS off my back. They rode me with a whip and spurs after I lost a war with them, and I did my filings.
Not filing a return is sorta like jabbing a sleeping bear in the ass with a stick. Eventually, they will notice it. And you don’t want to be around when the bear wakes up :mad:
I am a CPA. And, I DON’T DO TAXES!!!
shriek!!
All right - now that I’ve gotten that out of my system…we owe the IRS close to $7,000 this year. :eek:
As a partnership, yeah you better do your taxes. Now as an individual, if they owe you, they really don’t come after you with a check begging you to take it, so you can get away with not filing for several years. I didn’t agree with this, I told my roommate he better start filing one of these years or the IRS is going to come down on him hard. So he got his act together, and filed returns for the several years he missed. The IRS sent him a check for the amount they owed him for each year he didn’t file, along with interest. Now I didn’t see any nasty letter from them, maybe he got one, I don’t know, but I just had to shake my head in amazement at the outcome.
I didn’t file one year when I was a student because I didn’t owe taxes that year and wasn’t due a refund. Two years later the IRS tried to fine me $500 for failing to file. It took two phone calls and three letters and a whole lot of time to get it resolved. I was one of the lucky ones. You should definitely file.
Haj
Oh yes, you do NOT want to have business dealings with the IRS. The simplest problem may take YEARS to get straightened out. Here’s an abbreviated scenario of my altercation with the IRS.
May 1984, Me to the IRS: Oooops, I made a mistake and paid my withholding tax ($3000) into the wrong account (has to do with FID vs SSN for corporations).
August 1984, Me to the IRS: Hello? I made a mistake, is anyone there?
November 1984, Me to the IRS: Here is a copy of two letters I have sent you concerning a mistake I have made in my withholding tax. Please reply with instructions on what I need to do.
April 1985, Me to the IRS: Here’s my tax filing for the year 1984, there may be some discrepancy concerning my withholding tax.
August 1985, IRS to Me: Your 1984 tax filing reports an error in your withholding tax. Please send us $3000 immediately.
August 1985, Me to IRS: Here is a copy of the letters I have sent concerning my withholding tax in 1984, AND a check for $3000 (gulp, my accountant said this would be the best thing to do).
November 1985, Me to IRS: Ummm, hello? Here is a copy of the letters I have sent concerning my withholding tax in 1984. I’m now $6000 in the red and waiting for instructions on how to get my money back.
March 1986, IRS to Me: Here are the instructions on how to get your $3000 of over-paid withholding tax back from us. Send a copy of this letter with a copy of all of your previous correspondence to this office in PA. (So I’m thinking, what about the other $3000?).
March 1986, Me to IRS: I send all the copies of all the letters they requested to PA.
May 1986, IRS to Me: Here are the instructions on how to get your $3000 of over-paid withholding tax back from us. Send a copy of this letter with a copy of all of your previous correspondence to this office in Denver (!?!?!?!). (So I’m thinking, is this for the original $3000 or the extra $3000?).
May 1986, Me to IRS: I send all the copies of all the letters they requested to Denver.
August 1986, IRS to Me: Check for $3000 plus interest.
October 1986, IRS to Me: Check for $3000 plus interest.
So, you want to play with the IRS?