Hi r/tax!
Earlier this week I came here thinking I did not owe any tax for 2019…well, it seems I was wrong (once again, bad bookkeeping is biting me in the butt…). Apparently I had some invoices going into a separate email (my PayPal had two emails and some transaction email notifications went to the other…I had no clue until yesterday). I thought this would be fine and I can just send over my tax return via mail, but I just learned that it is a misdemeanor or even a felony to fail to file, and now it’s kind of eating me up inside.
I was 19 back then and I did not do well with keeping records of my commissions (I did 3D modeling work every once in a while). It seems during that year I made around $602 or something. This is self-employment income so it passes the $400 threshold. Originally I would have owed them $85. With the late fees and interest, I owe them around $262-$265 (their calculator gave me 262 but my calculation says 265…I’m not sure how the interest applies to be honest since I don’t know if the penalties are subject to interest or if the penalties are a flat fee).
So it seems like I do need to file and I definitely will, but I am also worried about explaining myself. Will I get a misdemeanor or a felony charge (or any criminal charges) if I send my tax return to the IRS? I was hoping they would just send me the bill and I would pay it…I really do want to pay them but I am also scared now 😭. What about the state (I’m in Maryland)? I don’t know if I owe them anything but will I be in trouble with them too?
Is there anyone who I need to talk to? A lawyer? A CPA? I feel so dumb that I am filing so late because I didn’t bother to check my other email for my paypal transaction reports.
Will I get a misdemeanor/felony if I file my 2019 tax return now?
byu/need-pylons intax
Posted by need-pylons
5 Comments
You will not get criminal charges for voluntarily filing a return that you failed to file. Especially not a low tax one. As you’re aware, there will be penalty and interest.
Think of the penalty and interest as a ticket.
That’s the worst that will happen.
You can leave 2019 alone at this point. While the IRS can go back to 2019 whenever they want, 2019 is currently outside of their scope of enforcement. It’s up to you if you want to file it. See IRS Policy Statement 5-133.
Don’t drop the soap
I am not a tax advisor, but the IRS will not care about a 2019 tax return for that amount. They only concern themselves with 2021 going forward, with perhaps some exceptions for large ones.