What Are the Consequences of Failing to Meet Tax Requirements?

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Common Tax-Related Criminal Charges in Minnesota

Did you know that if you fail to file your income taxes, you may face felony charges? In fact, one of the most common tax-related criminal charges is failure to file. Both individuals and businesses can face failure to file charges. For example, recently, a Kabetogama man was charged with four counts of felony failure to file.

Because tax crimes are so complicated, it is not uncommon for people to face several tax-related charges simultaneously. For example, a Norwood Young America man was recently charged with three counts of felony failure to file, two counts of felony filing a false individual tax return, and five counts of felony failure to pay income tax.

If convicted of felony failure to file, you may face both financial penalties and prison time. In both of the above-mentioned cases, each felony charge carries a maximum penalty of five years in prison and/or a $10,000 fine.

People can face criminal charges for things like failure to file or failure to pay taxes simply because they didn't realize that they had a filing requirement. Keep reading to learn how best to avoid facing criminal charges.

Understanding Filing Requirements and Deadlines

Filling your taxes can be complicated, and many people struggle to understand the process. The best way to avoid facing criminal charges for failing to file your taxes is always to file your taxes on time. If you miss the deadline for filing, you should work to submit your taxes to the state and federal government as soon as possible.

Proactive planning is also vital to ensuring that your taxes are filed correctly and on time. You may also find it beneficial to work with a tax attorney. For example, at Kennedy & Ruhsam Law Offices, P.A. we can help you with a wide range of tax planning and general taxation issues.

Our attorneys have experience in many tax-related areas, including:

  • Income taxes
  • Gift taxes
  • Estate taxes
  • Payroll taxes
  • MNCare tax planning

Meanwhile, if you are in a situation where you have been charged with a tax crime, or you believe you are under investigation for a tax crime, you should reach out to an experienced tax law attorney, like ours at Kennedy & Ruhsam Law Offices, P.A.

Important Tax Filing Requirements and Deadlines

As we mentioned earlier, one of the best ways to stay out of trouble with the MN Department of Revenue and the IRS is to file your taxes accurately and on time. While it is always best to file your annual tax returns, it is a good idea to familiarize yourself with the minimum filing requirements for both the state and the federal government. Equally important is knowing when your taxes are due, especially if you have a complicated tax situation or if you have to pay estimated taxes.

Below, we review the minimum filing requirements for state and federal income tax and important deadlines.

MN State Tax Requirements

According to the MN Department of Revenue, full-time Minnesota residents must file a state tax return if their income meets minimum filing requirements. Similarly, if you are a part-time or nonresident who earned income in MN, you must file a state tax return if your gross income meets the state's minimum filing requirement. Minimum filing requirements are categorized by the filing party's age and marital status.

The minimum requirements for 2021 are as follows:

  • Single, under 65: $12,525
  • Married, both under 65: $25,050
  • Single, 65 or older: $14,175
  • Married, one 65 or older: $26,350
  • Married, both 65 or older: $27,650

For 2021, part-time and nonresident minimum filing requirement is $12,525.

Even if you are not required to file income taxes in Minnesota, you may still need to. You will want to file an income tax return if you had MN income tax withheld from your pay, made estimated tax payments, or qualify for a refundable credit (ex: Child and Dependent Care Credit).

For more information on minimum filing requirements in Minnesota, review the MN Department of Revenue page here.

Federal Tax Requirements

Like state filing requirements, US citizens or resident aliens must file an income tax return with the federal government if they meet gross income minimums. Your minimum filing requirement is affected by your age and whether you can be listed as a dependent on someone else's taxes.

Minimum requirements for filing federal taxes include:

  • Single, under 65: $12,550
  • Single, 65 or older: $14,250
  • Head of household, under 65: $18,800
  • Head of household, 65 or older: $20,500
  • Married (filing jointly), both under 65: $25,100
  • Married (filing jointly), one 65 or older: $26,450
  • Married (filing jointly), both 65 or older: $27,800
  • Married (filing separately), any age: $5
  • Qualifying widow(er), under 65: $25,100
  • Qualifying widow(er), 65 or older: $26,450

There are a variety of other situations in which you may be required to file a federal income tax return. These situations can be confusing, and it is recommended that you work with tax experts like our attorneys at Kennedy & Ruhsam Law Offices, P.A.

Review this handout from the IRS for more information on the federal income tax filing requirements.

Important Tax Deadlines in 2022

One of the most important things you can do to avoid interest and penalties is to submit your taxes on time and to avoid missing any important deadlines. When you fail to pay or file your taxes on time, the government typically begins charging you interest and penalties on any taxes owed and will charge penalties for late filing. The penalties and interest can mount quickly and they are avoidable by filing and paying on time.

Individual tax returns for tax year 2021 are due on April 18, 2022.

Other important deadlines include:

  • First-quarter 2022 estimated tax payment: April 18, 2022
  • Last day to make a 2021 IRA contribution: April 18, 2022
  • Second-quarter 2022 estimated tax payment: June 15, 2022
  • Third-quarter 2022 estimated tax payment: September 15, 2022
  • Extended individual tax returns: October 17, 2022
  • Fourth-quarter 2022 estimated tax payment: January 15, 2023

If you are in a situation where you are facing criminal charges for a tax crime, need help filing your tax returns, or want assistance with paying back taxes send us a message online. Kennedy & Ruhsam Law Offices, P.A. knows how frustrating, confusing, and time intensive it can be to deal with your taxes and we are here to help.