Is restitution require on past taxes?
Question:
Hello,
I hope you’re having a blessed day! I need some advice, if you please.
In the past, my sister has committed past dishonesty in her tax forms, and I was wondering if restitution is required? Should she have to make things right by admitting to it and repaying whatever she owes? And what if she can’t financially make restitution for it?
She has committed to living in integrity and honesty in future tax forms and has sought the Lord's forgiveness.
Hope to hear back!
Blessings.
Answer:
I'm not familiar with the rules in your country, so I will use the rules in my own. There is no time limit to file an amended return when you owe additional money to the government. Filing and paying after the original due date will result in interest and potential penalties. The IRS generally has a three-year statute of limitations to assess additional tax, which begins when you file the original return. This can be extended to six years for substantial omissions of income (more than 25% of gross income) or indefinitely in cases of fraud. Just because she has not yet been caught cheating, it doesn't mean they won't eventually find it.
I don't know how much money is involved, but it would probably be best to consult with a tax lawyer or a certified accountant about the best way to file the corrected tax forms and set up a payment plan.
