Caller's Fiance Hasn't Filed Taxes In 20 Years – Dave Ramsey Says To Rethink Your Future With This Slothful Man

A recent episode of The Ramsey Show revealed a concerning situation for a caller named Liz from Mobile, Alabama. Liz shared her dilemma with hosts Dave Ramsey and Ken Coleman: her fiancé hasn't filed taxes in 20 years. While taxes have been withheld from his paycheck, he has avoided filing returns, leaving Liz seeking advice about their future together.

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Ramsey wasted no time pointing out the gravity of the situation. "How do you feel about planning your future with someone in jail?" he asked Liz. While not everyone who fails to file goes to jail, Ramsey noted that thousands are incarcerated for this offense each year.

The financial and legal risks tied to her fiancé's actions are significant for Liz, who is still 10 years away from retirement. Ramsey warned that the consequences could also affect Liz if she remains committed to the relationship, saying, "To the extent you're connected to him, you're gonna have a serious problem."

When Ramsey pressed Liz about her fiancé's reasoning, she admitted she wasn't entirely sure. She speculated that a history of unemployment may have played a role, but she couldn't explain why he continued to avoid filing once he started working again. Ramsey described this behavior as "slothful" and lacking integrity.

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Ken Coleman added to the concern by questioning the level of trust in their relationship. "If he's willing to withhold information from the federal government, what pray to tell is he willing to withhold from you?" Coleman asked. He suggested that Liz reconsider her commitment until her fiancé addresses his tax issues.

Despite the strong warnings, Ramsey offered a solution for Liz's fiancé to resolve his tax issues. He advised proactively contacting the IRS through a tax professional. He said that individuals can file the past three to four years of returns in many cases to avoid criminal charges.

Ramsey says the IRS tends to be lenient with those who come forward voluntarily. However, penalties and interest on unpaid taxes could still be significant. "If he's going to get current and not go to jail, I can actually walk him through that," Ramsey said. He also directed Liz to Ramsey Solutions' tax-endorsed local providers for help.

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According to the IRS, the penalty for failure to file taxes is 5% of the unpaid taxes for each month or part of a month that a tax return is late, but it won't exceed 25% of unpaid taxes. 

Beyond the legal and financial risks, Ramsey and Coleman emphasized the broader relationship implications. Coleman highlighted that the fiancé's lack of transparency and insistence on moving for retirement – against Liz's wishes – are red flags. "This relationship is really jacked up," Coleman said, suggesting Liz pause and reassess her commitment.

Ramsey summed up his advice bluntly: unless Liz's fiancé takes immediate action to resolve his tax issues and prove his reliability, he wouldn't advise her to continue the relationship. "I don't want my little sister Liz married to a jailbird," Ramsey said.

For Liz, the decision involves more than love – protecting her financial and emotional future. Ramsey and Coleman's advice underscores the importance of integrity and trust in any partnership, especially when major financial and legal risks are involved.

If you find yourself in a similar situation, consider contacting a financial advisor or tax professional to help you get back on track. 

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