Cheaters never win.

September 5, 2008 11:41 AM

I cheated on my taxes twice. I got caught once. Will I get caught again?

About 10 years ago, when I was younger, stupider, and more destitute, I cheated on my taxes. I got a refund instead of having to pay, and I went on with my life. A couple years later, I did the same thing again, and again I got a refund.

The other day, I got a letter in the mail from the IRS. They caught me. I have no defense, and I am planning to pay and make good on my stupid decision, and I no longer cheat on my taxes.

My question is, now that they've found me once, have I been "red flagged" - will they be more inclined to look for anomalies in my other tax filings now that they know I've done it once? Are they inevitably going to find the other one?

I understand that what I did was wrong, I did it anyway, and now that I've been caught I have no hesitation in making good on my prior bad decision. Please do not judge me for doing what I did - I've done plenty of that myself. I just want to know if I'm going to have another letter come to my door here soon.

posted by anonymous to work & money (12 comments total)

"The IRS has three years to give you a refund, three years to audit your tax return, and ten years to collect any tax due. Together, these laws are called the "statutes of limitations." They put time limits on various tax-related actions that you and the IRS can take." from http://taxes.about.com/od/taxtrouble/a/back_taxes_3.htm.
posted by GuyZero at 11:51 AM on September 5, 2008

My question is, now that they've found me once, have I been "red flagged" - will they be more inclined to look for anomalies in my other tax filings now that they know I've done it once? Are they inevitably going to find the other one?

Yes, and no. Yes, you are flagged for audits, etc. No, they will not inevitably find other past transgressions -- after all, this is the government we're talking about -- but the odds are certainly good that they will.
posted by -1 at 11:55 AM on September 5, 2008

This is really a "lawyer up" question. There's no statute of limitations for the IRS to audit you if they suspect fraud; even if another letter didn't come soon, it could still come some years down the road.
posted by Johnny Assay at 11:57 AM on September 5, 2008

You need to consult with an attorney immediately. I would also request of the mods that this question be deleted. I am not your attorney.
posted by Ironmouth at 12:02 PM on September 5, 2008

I mean to say that I would suggest that you request of the mods that this question be deleted. I am not making such a request myself.
posted by Ironmouth at 12:04 PM on September 5, 2008

Hey Ironmouth, I don't see why this question needs to be deleted. What rule does it run afoul of? I've seen plenty of discussion about illegal activity here (file sharing, drug use, etc.).
posted by BobbyVan at 12:09 PM on September 5, 2008

I agree with BobbyVan. The poster isn't asking advice on whether to 'break the law' or not. Just for insight into possible interpretation and consequence of past actions.

Not everyone has a good feel for what is actually 'legal', and the advice here isn't even consistent, further illustrating the ambiguity.

But yea, talk to a lawyer who can help you interpret this ambiguity in your favor.

Good Luck.
posted by johnstein at 1:25 PM on September 5, 2008

BobbyVan: I think Ironmouth meant that the OP should request that his own question be deleted so that the IRS will be less likely to find it and use it against him.
posted by Juffo-Wup at 1:26 PM on September 5, 2008

Yes, they're more likely to look at your back filings. When they get around to it. They may never get around to it, or they may not notice the thing you did the other time.
posted by Sidhedevil at 1:35 PM on September 5, 2008

which year does the letter refer to? I would be prepared for a second letter. If they are tacking on a bunch of interest talk to them to work out a settlement....... or pay & hope they don't find the other year. If you can, pay it, that interest is going to kill you if you owe $$$.

been there
posted by patnok at 2:23 PM on September 5, 2008

If it's something you can afford, you might consider the possibility of amending your other return and paying what you owe. I say "might consider" because I do not know whether this would result in a better outcome than the IRS finding the problem return themselves.
posted by zippy at 6:36 PM on September 5, 2008

Yes. I work for accountants. You're on the IRS's short list now.
posted by CwgrlUp at 7:10 PM on September 5, 2008