noblepa wrote:Did Doreen ever break down and file legally correct returns, or did she report to prison early? I know that she (through her lawyer) was trying to resist such filings, claiming that to do so would violate her fifth amendment rights. I also know she lost that fight.
Apparently she has not filed legally correct returns. She chose instead to report to prison on May 15th.
If she didn't file correct returns, what can the IRS do to force her to do so? Or does it matter? I assume that they have calculated her tax liability based on information from third parties, such as W-2's, 1099's, etc.
There is little the IRS can do to force anyone to file a tax return, if (as is the case here) the individual prefers to subject herself to whatever monetary penalties and criminal penalties the government can bring to bear.
It is my understanding that filing a CTC-inspired return (or any other frivolous return) is considered by the IRS to be no return at all, so failure-to-file penalties (fines, etc.) apply. Are these financial penalties a one-time thing that she can just add to her already sizeable tax bill, or do they continue accruing until a correct return is filed?
The failure to timely file penalty and failure to timely pay penalty, combined, eventually "max out" at the point they reach an amount equal to 25% of the amount of the unpaid tax, generally. Interest continues to accrue.
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