Information is empowering, and this article is about what the IRS has done to one non-whistleblower, in the past.
Below is an example, verbatim, from the IRS.gov website, of Nonfiler Investigations:
“New Orleans Doctor Convicted of Tax Evasion On September 29, 2009, in Texarkana, Texas, Malcolm David MacHauer was sentenced to 33 months in prison, followed by three years of supervised release, and ordered to pay $222,782 in damages. MacHauer was found guilty by a jury on June 17, 2009, of three counts of trying to evade and defeat payments of federal income taxes. The judge also ordered MacHauer to pay damages of $222,782 and additional prosecution fees of $5,437. According to information presented in court, although MacHauer received income from Wadley Medical Center in Texarkana, Texas, for his services as a physician, he failed to pay the appropriate federal income taxes. Instead, MacHauer puts the earnings into his company, transfers the money to the MacHauer Family Trust, and then withdraws the money from the Trust to pay for his personal expenses without paying income tax.”
Many of the non-filer investigations, involving taxpayers, transfer money, to avoid paying taxes.
Taxpayers should always remember, “money can be tracked”.
Oh, you took money from the country and placed it in an offshore account?
Let’s see, are there any laws that have been violated?
Yes.
You must declare all cash over $10,000 when flying on an International Flight.
What’s that? Oh, you want to transfer money from your account to an offshore account? Fact: Every time there is a transaction, more than $5000 financial institutions must report the transaction to the IRS! Mr MacHauer, seems to have understood all of the above laws, and decided to move the money into his own private circle. And, “forget” to pay taxes on earned income! The IRS, not finding his dealings funny, put him in federal prison for 33 months. Although you may be going through some tough times, and your case is not like Mr/Dr. MacHauer, please take a moment to realize, that it is “always” better, if you contact the IRS first, when you have unfiled taxes. Explain that you are sick, or have lost your job, have a death in the family, or have recently gone through a divorce, and lost track of time, or, that a hurricane knocked down the roof of the house. The IRS will happily respond to your call! And, they’ll tell you what year you need to file, and give you a due date for filing your overdue tax returns.