Originally posted by
I am pretty sure that the amount of money she owes, is the original taxes plus fines and penalties. So without any hard facts to back this up, I would imagine that the fines and penalties are a lot of money... but I could be wrong.
Used to be a CPA. You are right about fines and penalties. Look at it this way - some people are expected to pay "x" amount. If they are self-employed, they have to pay estimated taxes through the course of the year. Over- not under. If you forget a estimated return or two, you're already behind. For every return that isn't filed you start accruing late fees. For every tax dollar that isn't paid, you start accruing interest. Then they start to multiply.
Pretty soon, you start getting scary letters from the IRS that look a lot easier to ignore because you don't know what to do. (worst possible move ever, btw...) all those fines, taxes and interest keep building. Then you don't want to file the next tax return...