# i have not filed taxes since 2016 (what is maximum irs penalty?)



## WWF (Aug 15, 2016)

as far as i can research i came to conclusion that there are 3 different irs penalties that are imposed:

failure to file taxes at a 5% penalty each month that maximizes at 5 months so 25%

failure to pay taxes at a penalty of .5% each month that it hasn't been paid at a maximum of 25%

then there is interest that comes into play that i cannot seem to figure out 100%

however what's interesting is that the total maximum irs penalty that can seem to incur on an individual is 47.5% which includes 22.5% late filing and 25% late payment according to a google search i just did typing in "maximum irs penalty" this is self explanatory but what about any interest?

are you telling me that once you have gone 45 months (0.5% x 45 = 22.5%) you don't have to worry about anything else which includes interest? 

in other words if you have gone only 4 months in failing to file taxes, failing to pay, that's when you can tack on the interest which seems to be 3% plus whatever else is going on (extremely confusing yes)

so 45 months seems to be the magic number that i wanted to confirm

never does it say anywhere on the internet that tells you to just file the taxes on time but don't pay anything so that you can not get penalized 5% each month up to 5

i have been waiting for my wages to be garnished for years and years now because it had been done to me over 15 years ago plus i never had any assets back then and even now, no assets for any creditor or the irs to levy against me for that matter

i am thinking that since i have not filed taxes for july 2020 that was delayed from april 2020 due to the corona virus that's when i need to factor interest because it's only been 4-5 months as opposed to 45 months

please only people reply who really know what they are talking about, i do not care to converse with someone who's going to ask me:

"Aren't you scared of going to jail?"

So let me ask a question to try and make it as simple as possible:

what is the maximum percent that one can expect to pay if they haven't filed their 2007 income tax in which $100 should have been paid back then if filed on time and paid? $147.50 ? $150 ? more maybe?

THANK YOU!


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## KevinJohnson (Mar 23, 2020)

I do not think there is a cap on the interest. It will continue to accrue.

Whether the IRS will contact you is based on what THEY would calculate your 2016 Taxes due. Using the W2s and 1099s they received. 
If your income was very low in 2016 and you came close to the standard deduction it is likely you didn't meet their threshold for follow up.

If you haven't received any notices about 2016 by today then you are likely clear. Have you? You did not mention your 2016 total wages.
They will not seize your bank accounts or garnish your wages without some notices prior.

If you owe for 2019 file now and get that completed. The payment side can come later.


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## Amsoil Uber Connect (Jan 14, 2015)

Short answer. B4 I read the rest.
It's Depends on if you know how to play, Title 26 of the Internal Revenue Code Section 6201 against them. It is about Assessment procedure and date of the Assessments creation. And the 10 years to collect. As for non filers, assessments are usually not on April 15th..

Have you received letters for each year asking for your return ? And if you are not required to file a return please state why here > ________

Once you self assess yourself, by signing and mailing the return, thereby creating the assessment date when they process it, the interest and penalties will go down a lot. How much ? Everyone is different.

There is an interest rate chart that they use that may change quarterly. It's around 8% ?


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## islanddriver (Apr 6, 2018)

I have a friend that didn't file in about 10 years also when he retired and took a lump sum out of his 401. the IRS took it from his bank account. for back taxes and interest, penalties. He did get letters over the years.


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## Amsoil Uber Connect (Jan 14, 2015)

That is what happens when you ignore them, and the SSN is tied to a back account. 
He should have tested the bank but sounds like he already knew or should have known. 
Maybe open another account to cash the check. Or He could have made a small withdrawal, say a 1000 and see what happens. But his bank already had a levy notice, and just waiting for him to trip up.

Fortunately 401K's are exempt from the Lien, Levy process.


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## islanddriver (Apr 6, 2018)

Amsoil Uber Connect said:


> That is what happens when you ignore them, and the SSN is tied to a back account.
> He should have tested the bank but sounds like he already knew or should have known.
> Maybe open another account to cash the check. Or He could have made a small withdrawal, say a 1000 and see what happens. But his bank already had a levy notice, and just waiting for him to trip up.
> 
> Fortunately 401K's are exempt from the Lien, Levy process.y mistake it was from his pension fund


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## IRME4EVER (Feb 17, 2020)

WWF said:


> as far as i can research i came to conclusion that there are 3 different irs penalties that are imposed:
> 
> failure to file taxes at a 5% penalty each month that maximizes at 5 months so 25%
> 
> ...


 Here is what I did. I drove a cab for 13 years. Independent Driver. I used Square to accept credit card transactions. According to Square every year I had to make so many transactions and so much money with credit cards. Cash was all mine! 
Never reported it why should I? No trace on cash! 
2019 I started filing, beings I was driving for Uber. Don't want to screw with the IRS especially when Uber files also in your name.
2019 tax returns for 2018 I got back 2.00 from state and 25.00 from federal. This year I owed 46.00 federal and got 25.00 from the state.


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## biznizbodniz (Nov 3, 2020)

I fought with them years ago over a bogus 1099 someone sent me. No matter what, you lose. They run a scorched earth policy. Even if your right. I should've just paid the money I never owed. It cost me faaar more. And attorneys wont help. Believe me, I tried finding one.I even contacted my congresscritter over it and was told to take it up with the IRS.


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## Jon Stoppable (Dec 11, 2019)

Amsoil Uber Connect said:


> There is an interest rate chart that they use that may change quarterly. It's around 8% ?


Ummm...not quite.

https://www.irs.gov/taxtopics/tc653...rest accrues on any,term rate plus 3 percent.


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## wallae (Jun 11, 2018)

>>They will not seize your bank accounts or garnish your wages without some notices prior.

€€ Get &#128293; like that
I would not count on getting that notice.
It could go to what they have/think is your last known address.
Having gone through a 6 year long divorce.....
You can wake up and find your accounts empty or frozen.

Always have cash hidden.
Expect the worst 
Hope for the best.



KevinJohnson said:


> They will not seize your bank accounts or garnish your wages without some notices prior.
> 
> If you owe for 2019 file now and get that completed. The payment side can come later.


See above. I know


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## kingcorey321 (May 20, 2018)

Are all your earnings from rideshare ?
If so each year you ow nothing. All the miles if you own your car will offset the profit . But the irs will fine you what i have read its a 200 fine each year for not filing . I Also have not filed in 3 years . I am not filing again in 2020 . In my situation it looks better if i am totally broke . Now if you had a 1099 job other then rideshare holy smokes you will be looking very bad . You will have to pay back 85 dollars for every 400 earned ! With interest .
Now a w2 job taxes were taken out already. You should get money back each year. You have to be stupid leaving free money on the table .


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## waldowainthrop (Oct 25, 2019)

WWF said:


> please only people reply who really know what they are talking about, i do not care to converse with someone who's going to ask me:
> 
> "Aren't you scared of going to jail?"


You don't make the rules around here! Now let me ask you a pertinent but unwanted question:

"What if everyone took this attitude towards paying their taxes?"


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## wallae (Jun 11, 2018)

kingcorey321 said:


> Are all your earnings from rideshare ?
> If so each year you ow nothing. All the miles if you own your car will offset the profit . But the irs will fine you what i have read its a 200 fine each year for not filing . I Also have not filed in 3 years . I am not filing again in 2020 . In my situation it looks better if i am totally broke . Now if you had a 1099 job other then rideshare holy smokes you will be looking very bad . You will have to pay back 85 dollars for every 400 earned ! With interest .
> Now a w2 job taxes were taken out already. You should get money back each year. You have to be stupid leaving free money on the table .


?? Miles offset all profit 
Does he have any records of the miles?
We have people here who have been audited with records


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## Gone_in_60_seconds (Jan 21, 2018)

WWF said:


> as far as i can research i came to conclusion that there are 3 different irs penalties that are imposed:
> 
> failure to file taxes at a 5% penalty each month that maximizes at 5 months so 25%
> 
> ...


...if I were you, I would seriously consider moving to a non extradition country.


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## Amsoil Uber Connect (Jan 14, 2015)

waldowainthrop said:


> "What if everyone took this attitude towards paying their taxes?"


Considering that all that comes into the IRS can not even begin to pay just the interest on the National Debt. Not very much. It just gets offset to your Children's Children's Children.


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## O-Side Uber (Jul 26, 2017)

wallae said:


> >>They will not seize your bank accounts or garnish your wages without some notices prior.
> 
> €€ Get &#128293; like that
> I would not count on getting that notice.
> ...


UMMM.., I had the IRS steal $1000 from my checking account a few years back because they are now the bill collectors for the San Diego court system . According to them I never paid a failure to appear on a "fix it ticket" back in .......wait for it.......1994!!!!! I tried to fight it with a print out of my DMV records (that only go back 10years)...showing I've always been licensed and legit with the courts and obviously paid that fine back in 1994 or the DMV would have suspended my license. Did me no good. Without a receipt from 1994 I was F'd!! This was a straight up robbery!!! 25 years later!
No notice, no warnings . Bye bye $1000


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## Amsoil Uber Connect (Jan 14, 2015)

Most likely FTB not IRS. But same thing.


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## wallae (Jun 11, 2018)

O-Side Uber said:


> UMMM.., I had the IRS steal $1000 from my checking account a few years back because they are now the bill collectors for the San Diego court system . According to them I never paid a failure to appear on a "fix it ticket" back in .......wait for it.......1994!!!!! I tried to fight it with a print out of my DMV records (that only go back 10years)...showing I've always been licensed and legit with the courts and obviously paid that fine back in 1994 or the DMV would have suspended my license. Did me no good. Without a receipt from 1994 I was F'd!! This was a straight up robbery!!! 25 years later!
> No notice, no warnings . Bye bye $1000


IRS took everything from Willie Nelson


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## Amsoil Uber Connect (Jan 14, 2015)

The IRS was not a kinder frendlier service back then either.

Plus they love to make examples of Celeb's. Usually around filing time.


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## wallae (Jun 11, 2018)

Amsoil Uber Connect said:


> The IRS was not a kinder frendlier service back then either.
> 
> Plus they love to make examples of Celeb's. Usually around filing time.


They were very good to me. I will say that... but I had circumstances
Ex- Wife who got everything and I mean everything. Kids and all.

Then I got a call from social services saying that they took the kids away from her and were putting them on a plane to me... next week (minus the house and cash)

I sent them all the documentation
Can you pay us 500?
For 8 years.. 
The year of our divorce my ex (a cpa) said she would file jointly and then did not... would not give me the documents or numbers to file.
IRS would not accept my return the next year without the missing year.
I just moved on.


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## kingcorey321 (May 20, 2018)

wallae said:


> ?? Miles offset all profit
> Does he have any records of the miles?
> We have people here who have been audited with records


Records . He better not over inflate them. He will for sure get audited .
I just use my gps. And uber and lyft app gives miles and all that bs about expenses slush fund that can be used for off setting any taxes due .


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## Jon Stoppable (Dec 11, 2019)

Amsoil Uber Connect said:


> Considering that all that comes into the IRS can not even begin to pay just the interest on the National Debt. Not very much. It just gets offset to your Children's Children's Children.


Not even remotely true:

https://www.cbo.gov/publication/56324
Bear means, human is off by a factor of 10x. That's like an order of magnitude of error. Human needs a new hobby because human doesn't understand the tax code, tax practice, or the federal budget at all.


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## Amsoil Uber Connect (Jan 14, 2015)

Thank you for your answer, which will get filed under T for trash. As bears have no clue what I know about IRS procedures. Much less be able to read.


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## Bork_Bork_Bork (May 20, 2019)

kingcorey321 said:


> Are all your earnings from rideshare ?
> If so each year you ow nothing. All the miles if you own your car will offset the profit . But the irs will fine you what i have read its a 200 fine each year for not filing . I Also have not filed in 3 years . I am not filing again in 2020 . In my situation it looks better if i am totally broke . Now if you had a 1099 job other then rideshare holy smokes you will be looking very bad . You will have to pay back 85 dollars for every 400 earned ! With interest .
> Now a w2 job taxes were taken out already. You should get money back each year. You have to be stupid leaving free money on the table .


Lol, you think so, eh? I wrote a check for 4K to the feds last year, and 2K to the State. Mileage only covers your income if you're an idiot.


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## Jon Stoppable (Dec 11, 2019)

Amsoil Uber Connect said:


> Thank you for your answer, which will get filed under T for trash. As bears have no clue what I know about IRS procedures. Much less be able to read.


Bear will file you under "AB" for amuse-bouche, because you lack substance for even an appetizer.


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## _Tron_ (Feb 9, 2020)

IRME4EVER said:


> Here is what I did. I drove a cab for 13 years. Independent Driver. I used Square to accept credit card transactions. According to Square every year I had to make so many transactions and so much money with credit cards. Cash was all mine!
> Never reported it why should I? No trace on cash!
> 2019 I started filing, beings I was driving for Uber. Don't want to screw with the IRS especially when Uber files also in your name.
> 2019 tax returns for 2018 I got back 2.00 from state and 25.00 from federal. This year I owed 46.00 federal and got 25.00 from the state.


Nice story, but what does that have to do with the price of bananas on the moon?



Amsoil Uber Connect said:


> Considering that all that comes into the IRS can not even begin to pay just the interest on the National Debt. Not very much. It just gets offset to your Children's Children's Children.


+1 for the Moody Blues reference



WWF said:


> please only people reply who really know what they are talking about, i do not care to converse with someone who's going to ask me:
> 
> "Aren't you scared of going to jail?"


OP, how we doin?


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## waldowainthrop (Oct 25, 2019)

_Tron_ said:


> OP, how we doin?


Still doin the crime, still avoidin the time! &#128517;


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## Amsoil Uber Connect (Jan 14, 2015)

_Tron_ said:


> +1 for the Moody Blues reference


"With the power of Ten Billion Butterfly Sneeze's... " Maybe I should send that to Bear. :roflmao: But perhaps the French means Ignore. Oh well. &#129335;‍♂


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## Wildgoose (Feb 11, 2019)

Whatever you guys did file tax claim or not, be prepare to file this year.
Now IRS requires Uber and Lyft to issue 1099NEC documents and it requires to those who gets this documents to file Tax.


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## _Tron_ (Feb 9, 2020)

I just looked up what NEC stands for. Has anyone looked this up? It stands for *N*on *E*mployee *C*ompensation.


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## Wildgoose (Feb 11, 2019)

_Tron_ said:


> I just looked up what NEC stands for. Has anyone looked this up? It stands for *N*on *E*mployee *C*ompensation.


It should be. When some company hires some person to do some job (that is not related with their business expense directly) like private investigator fees or Lawyers fees or to perform paint jobs, clean jobs which are more than $600, they could use this form to deduct the expenses.


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## Launchpad McQuack (Jan 8, 2019)

Wildgoose said:


> Now IRS requires Uber and Lyft to issue 1099NEC documents and it requires to those who gets this documents to file Tax.


Too much is being made out of this. All the IRS did was take the non-employee compensation stuff from 1099-MISC and move it to its own form (1099-NEC). I don't think there is anything nefarious going on here. I think the rationale is simply that, with the advent of all these independent contractor gig jobs, non-employee compensation has become common enough that it no longer makes sense to lump it in with the bajillion other things that 1099-MISC can be used to report. It just provides a more streamlined form that is easier for the people filling it out and easier for the people receiving it. Reporting thresholds didn't change. Whether or not you have to file taxes didn't change. Deducting expenses didn't change. They are literally just moving a number from an existing form to a new form.


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## _Tron_ (Feb 9, 2020)

This is what Intuit states is the reason the form was RE-introduced. Has to do with streamlining filing dates...

https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-form-1099-nec/L5fbwIFSn


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## Wildgoose (Feb 11, 2019)

Launchpad McQuack said:


> Too much is being made out of this. All the IRS did was take the non-employee compensation stuff from 1099-MISC and move it to its own form (1099-NEC). I don't think there is anything nefarious going on here. I think the rationale is simply that, with the advent of all these independent contractor gig jobs, non-employee compensation has become common enough that it no longer makes sense to lump it in with the bajillion other things that 1099-MISC can be used to report. It just provides a more streamlined form that is easier for the people filling it out and easier for the people receiving it. Reporting thresholds didn't change. Whether or not you have to file taxes didn't change. Deducting expenses didn't change. They are literally just moving a number from an existing form to a new form.


IRS says whoever make more than $600 require to file tax. 
IRS has a rule of thresholds which explain if you can file with someone as your dependent or they need to file separately. ( whose income is under $12,000 ). A lot of people have mistakenly believe that who don't make more than $12,000 won't need to file tax. Actually it classifies just to file separately or good to file together. 
Basic requirement for taxable income is $600. Where ever you make over $600 from, you are required to add that income with your other income. When you file that $600 income, you are allowed to show your whatever deductions from that income.


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## indytd (Aug 29, 2016)

It depends. Are you having money withheld from any payments to you. When the IRS thinks you are having more money withheld that you aren't getting a refund on than the taxes you would pay then they will not make a fuss and just keep your withholding money. If the IRS thinks you are cheating the government of it's owed money then they will start confiscating money from your pay asap. It might take the IRS a few years to get caught up to you.


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## Launchpad McQuack (Jan 8, 2019)

Wildgoose said:


> Basic requirement for taxable income is $600.


No, it's not. $600 is the threshold for filing a 1099 to report non-employee compensation to the IRS. It has nothing to do with whether the person receiving it has to file an income tax return or report the income.

Look at Chart A in the 1040 instructions. This is the chart that applies if you are not claimed by somebody else as a dependent. If you are single and under 65, then you have to file if your gross income is over $12,200 (for 2019). If your gross income is less than that, then you don't have to file....UNLESS you meet one of the conditions in Chart C. The one that generally applies to rideshare drivers is #3. "You had net earnings from self-employment of at least $400." So if you have net self-employment earnings of $400, then you have to file even if you are below the gross income threshold of $12,200. The reason for this is that you still have to pay self-employment tax on your self-employment earnings even though you will not owe any income tax.

If you have to file an income tax return, then you have to report ALL income from ALL sources, not just income from sources in excess of $600. The only significance of the $600 figure is that if you receive non-employee compensation in excess of $600, then that compensation will be reported to the IRS on a 1099. Since it is reported to the IRS that makes it more difficult to hide if you are trying to be dishonest, but the filing of the 1099 does not affect whether or not you have to file an income tax return and report the income.


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## Amsoil Uber Connect (Jan 14, 2015)

Launchpad McQuack said:


> Too much is being made out of this


True. I don't care what Title comes after 1099. To the right it states that copy of this form has been sent to the IRS. Which may trigger a Filing Requirement in there eyes.


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## Uber's Guber (Oct 22, 2017)

WWF said:


> i do not care to converse with someone who's going to ask me: "Aren't you scared of going to jail?"


Why would we ask a dumb question?
Of course you're scared of going to jail! :biggrin:


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## Young Kim (Jan 28, 2015)

I'd either file amended returns now... But if you are not so inclined, I'd completely stop driving and get a cash paying job and stay off the IRS radar for at least a couple of years and hope for the best.


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## Amsoil Uber Connect (Jan 14, 2015)

Launchpad McQuack said:


> income from ALL sources


I'll take that a step further. Have you seen the list of "Sources" of Income ?


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## waldowainthrop (Oct 25, 2019)

Imagine preferring to live in fear and uncertainty for the rest of one’s life over a few thousand dollars. Sure, it’s possible to get away with for a while, but why? And why post about it publicly? Money troubles are no joke, but public discussions about tax evasion are actually pretty funny from a certain perspective.


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## Young Kim (Jan 28, 2015)

waldowainthrop said:


> Imagine preferring to live in fear and uncertainty for the rest of one's life over a few thousand dollars. Sure, it's possible to get away with for a while, but why? And why post about it publicly? Money troubles are no joke, but public discussions about tax evasion are actually pretty funny from a certain perspective.


I totally agree. Peace of mind has no price tag...


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## Who is John Galt? (Sep 28, 2016)

_Tron_ said:


> +1 for the Moody Blues reference


&#127908; &#128079; 
.


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## Jst1dreamr (Apr 25, 2019)

Amsoil Uber Connect said:


> Fortunately 401K's are exempt from the Lien, Levy process.


Only until you cash them in.


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## IRME4EVER (Feb 17, 2020)

wallae said:


> >>They will not seize your bank accounts or garnish your wages without some notices prior.
> 
> €€ Get &#128293; like that
> I would not count on getting that notice.
> ...


 That's not true!! I never received a notice from the IRS and they seized my bank account with Wells Fargo. This happened in 2019 for 2005 taxes that I filed with H&R Block.
IRS had taken all monies from my account, how I found out, I got a text from my bank saying I had a zero balance. I drove down to the bank. Got all information.
I called the IRS phone number that WF had given me. They told me it was because of my 2005 taxes. I told them H&R Block did my taxes. Ironically H&R only keeps records for 3 years. IRS lifted the levy against my account and I made payments. 
If you need to get copies of your taxes beyond 3 years it will cost you close to 200.00. 
I think IRS screwed me over. 
Next time this happens if and when, I am calling Optima Tax Relief at 800-535-8705 let them deal with it.


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## Jst1dreamr (Apr 25, 2019)

IRME4EVER said:


> That's not true!! I never received a notice from the IRS and they seized my bank account with Wells Fargo. This happened in 2019 for 2005 taxes that I filed with H&R Block.
> IRS had taken all monies from my account, how I found out, I got a text from my bank saying I had a zero balance. I drove down to the bank. Got all information.
> I called the IRS phone number that WF had given me. They told me it was because of my 2005 taxes. I told them H&R Block did my taxes. Ironically H&R only keeps records for 3 years. IRS lifted the levy against my account and I made payments.
> If you need to get copies of your taxes beyond 3 years it will cost you close to 200.00.
> ...


The only time in the last 45+ years that the IRS came after me for my taxes was the only year H&R Block did my taxes. H&R block refused to even help with the IRS and just swore that I must have given them bad W-2 info. I have never said anything good about H&R Block since.


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## Amsoil Uber Connect (Jan 14, 2015)

H&R is a joke. May as well just sign a blank 1040, hand the IRS your W-2 and be done.


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## Launchpad McQuack (Jan 8, 2019)

Jst1dreamr said:


> I have never said anything good about H&R Block since.


I have said this a few times on this forum, but I'll say it again. I used H&R Block once. Never again. I walked out of there feeling like I had a better handle on how things were supposed to be done than the person that did my return, and I was a junior in college at the time.


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## Jon Stoppable (Dec 11, 2019)

IRME4EVER said:


> Next time this happens if and when, I am calling Optima Tax Relief at 800-535-8705 let them deal with it.


Bear advises against the TV tax firms. Bear knew a human that paid one of those a $10K retainer to file several years' worth of unfiled tax returns to recover a portion of the $50K the IRS had assessed said human. The TV tax firm did nothing except cash the check. Bear called the IRS and growled a couple of times, and human got $40K refunded.


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## UberTaxPro (Oct 3, 2014)

WWF said:


> as far as i can research i came to conclusion that there are 3 different irs penalties that are imposed:
> 
> failure to file taxes at a 5% penalty each month that maximizes at 5 months so 25%
> 
> ...


You mean 2017 not 2007 correct? FYI Interest can not be abated by the IRS, Failure to file & Failure to pay can be abated by the IRS for certain reasons. Also, remember that any refund you might have coming is lost after 3 years. I can help you with back filing returns, including penalty abatements.


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