TAX AMNESTY

Occasionally a new client will call in and ask us to get them a tax amnesty.  When we ask what they are wanting tax amnesty for the responses very widely.  Usually, taxpayers think that tax amnesty means that the IRS will waive all the interest and penalties once the back tax returns are filed.  The term IRS tax amnesty only refers to the IRS policy of not enforcing the penalty of up to one year in jail for each year a tax return was not filed—IF YOU AGREE TO FILE THE RETURN.  It is not uncommon for a new client to come in who has not filed for several years.  They assume that they have committed a crime and will go to jail or prison.  If that were the case, millions of non-filers would be subject to incarceration.  In reality, once you file your returns, the IRS has no interest in prosecuting you for criminal action unless you file a fraudulent return or are guilty of tax evasion.