How does the IRS know if you don't pay your taxes?

Whomever paid you for your services probably deducted your income as an expense on their end. To do that they must supply a 1099 to the IRS with your SSN showing exactly how much they paid you. If you don't file a return that matches what they reported, you will receive a notice. read more

If you don't file a return that matches what they reported, you will receive a notice. You will have to pay a failure to file penalty, a failure to pay penalty, and interest on the tax due. If you don't, they will garnish your wages; if you don't have wages, they would seize property. Pay your taxes. read more

If you don't file, you'll face a failure-to-file penalty. The penalty is five percent of your unpaid taxes for each month your tax return is late, up to 25 percent. On top of that fee, if you file more than 60 days late, you'll pay a minimum of $135 or 100 percent of the taxes you owe (whichever is less). read more

Generally, the IRS can collect taxes, interest, and penalties for all of the taxes you have owed over the years and has programs in place to identify nonfilers. Keep in mind that the filing of a return starts the audit and collection time limits, or statutes of limitation. If you do owe taxes, you can probably work out an installment plan to pay off your debt. read more