Late Filing Taxes (US) IRS

[Blackfish64]

It dawned on me the other day that I forgot to file my taxes for 2013 after I moved here in January 2014. And now I must file for 2014, too (though no problem there; not late yet).

Anyone have experience with this? Am I going to be fined? Are they gonna lock me up and throw away the key? Are they going to harass me and beat me into submission and destitution? Will I be transported back to the US on a secret airplane in sensory deprivation clothing and tortured and water-boarded to death? Or will they just slap me up on the terrorist no-fly list for the rest of my life?

I've never been late filing taxes before, let alone while residing in another country.

Cripes! What do I do now?

[metisdead]

Moved to the Home country forum.

[BKKSnowBird]

No problem filing late unless you own them money. Then expect some fines.

[Blackfish64]

Thanks!

[86Tiger]

They just want their money. If you are due refund file and forget it. If you owe send a check, they will let you know how much more to send.....

[Blackfish64]

I owe them nothing.

And, in light of the answers you kind people have put forth, since I owe them nothing, why bother filing at all?

[mesquite]

I owe them nothing.

And, in light of the answers you kind people have put forth, since I owe them nothing, why bother filing at all?

You would file to get any refund you might be due.

Also, the IRS may file a substitute return which might not be the same as a return you would have filed. That return may show that you owe them money. Then all the penalties and fees kick it.

[Blackfish64]

I understand. I would file to get any return if I had anything coming to me. Count on it! But that is not the case.

I owe them nothing. They owe me nothing.

I just thought there might be some good reason to file a return since I live abroad now. Apparently there is none.

[BKKSnowBird]

Are you earning money in Thailand? I was and did not owe or owed anything. I filed because I did not want to get audited one day.

[Blackfish64]

No. Not earning anything.

[mesquite]

I understand. I would file to get any return if I had anything coming to me. Count on it! But that is not the case.

I owe them nothing. They owe me nothing.

I just thought there might be some good reason to file a return since I live abroad now. Apparently there is none.

Then the only reason to file would be to start the three year clock. Generally they have three years to audit a return after it is filed. If you never file it, they can wait forever and possibly audit you ten to twenty years from now, or audit your estate for that return.

If you ever wanted to get a US security clearance, your fail to file a return (assuming you had earned enough and were legally required to file) could cause problems.

Edited March 4, 2015 by mesquite

[TerryLH]

Over a certain dollar amount you are required to file, whether you owe them anything, or not.

Google for a 2013 tax book and read the requirements. It will tell you what you want to know. Same for the 2014 year.

[AZBill]

Failing to file is a crime unless you are exempt from filing. Doesn't matter whether you owe or not. File your return.

[Blackfish64]

Yeah, I went on the IRS Web site earlier today and followed the questionnaire on who needs to file an income tax return.

My results showed I did not need file a return.

Failing to file is a crime? Where did you get that information?

[JimGant]

My results showed I did not need file a return.

Completely correct. And obviously you know you didn't have to file 'cause you did the math, namely:

If filing as a single, your gross income is $10,000, or less. Or if filing jointly with wife, gross income is $20,000, or less. Add $1,200 if you're over 65 (or $2400 if you're both over 65).

As long as there's not a pile of 1099's telling the IRS you should be filing, expect zero queries (and even with 1099's, they don't know whether or not you might have an itemization total that could take you well above the $10k/20k filing thresholds).

Relax.

[NeverSure]

It's when IRS has 1099's or other evidence of income that they might file a return for you. Then they'd send you a bill for the taxes and penalties but not give you any of your deductions. Then you'd have to battle that.

Personally I'd file a nil report to start the audit clock but as they say, up to you.

[gk10002000]

If you have a refund coming, you will not have any issue. If you owe taxes then yes, there will be a fine and a penalty.

[BudRight]

Failing to file is a crime unless you are exempt from filing. Doesn't matter whether you owe or not. File your return.

If you had read the thread you would notice that the OP has no income. That means he is specifically exempt from filing according to the IRS's own rules. Filing is a waste of time for him unless one of the 'special' situations applies.

Source: http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

[bill1369]

Last time I checked (a couple years ago, so it has probably gone up since) the earned income threshold was $9700 (single person) - meaning if your earned income was at or below that threshold you needn't need to file anything with IRS. I imagine the individual states have similar thresholds.

Remember that certain monies paid are not earned income; e.g, Veterans disability compensation; Combat Related Special Compensation (CRSC) Social Security retirement does not become income until your actual earned income reaches a threshold - again, a few years ago that was $28,000 (single).

(I hope my memories of these thresholds is accurate but, if they are not, they're close to it.)

[gk10002000]

Last time I checked (a couple years ago, so it has probably gone up since) the earned income threshold was $9700 (single person) - meaning if your earned income was at or below that threshold you needn't need to file anything with IRS. I imagine the individual states have similar thresholds.

Remember that certain monies paid are not earned income; e.g, Veterans disability compensation; Combat Related Special Compensation (CRSC) Social Security retirement does not become income until your actual earned income reaches a threshold - again, a few years ago that was $28,000 (single).

(I hope my memories of these thresholds is accurate but, if they are not, they're close to it.)

My mother falls below all those thresholds and she does not and has not filed a tax return for the last ten years or so. No issues. Her only income is Social Security and it is not that much. The gross income threshold is 10,150 under 65, 11,700 over 65. It is Gross income and not earned income, although social security is excluded from that. However there are caveats

　　

Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2014 or ( one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly).

　I may be wrong, but I have encouraged my mother to file a return just because 1: it is simple and she could do the one page 1040 EZ form. 2: It closes the books every year. I prefer things closed out when dealing with the IRS. Just my preference