As IRS faces cutbacks and potential elimination, some taxpayers are considering not filing returns this season, raising concerns among tax experts. Some taxpayers may not file due to fear of being found, overwhelmed by potential debt, or believing taxes are unconstitutional. However, not filing can result in hefty penalties, including civil penalties for frivolous tax returns, tax court battles, and failure to file penalties of 5% per month up to 25%. It is advised to file returns on time or request an extension to work out a payment plan with the IRS to avoid these penalties. Tax protestors who deliberately underpay or refuse to file may face severe consequences, including court battles and monetary penalties. While uncertainty surrounding IRS layoffs and potential abolition may contribute to filing delays, experts caution against avoiding filing altogether to mitigate the risk of penalties. Ultimately, it is advised to file returns on time, even if facing financial difficulties, to avoid additional fees and legal issues.
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