Haven’t filed your tax return yet? If not, sooner or later, the IRS catches up with you. More importantly, not filing your tax return will end up costing you more. Filing your returns on time is the only way to avoid tax-related nightmares.
Do I have to file taxes?
Not everyone is required to file taxes annually. Whether you need to file depends on factors like your income level and filing status. Generally, if your income falls below the standard deduction for your filing status, you may not need to file. However, if you’re eligible for a tax refund, you still need to file a return to claim it.
What are the Consequences of Not Filing Your Taxes?
First and foremost, it’s illegal to ignore your any tax-related financial responsibilities. The IRS can penalize you for both not filing and not paying taxes owed.
The IRS doesn’t take legal action against every non-compliant taxpayer due to the sheer volume of individuals who neglect to file their taxes annually. However, if you think you can disappear among millions, you’re wrong. In the end, the IRS will prioritize your case and employ various collection methods to recover any outstanding tax debt. So no matter what, there is no escape from the IRS.
Therefore, a late payment penalty will be imposed on the amount you owe each month you don’t file. And, if you haven’t filed your taxes for years, the IRS may suddenly seize your assets. You may even be accused of tax evasion and face prison time. Additionally, failing to file within the designated time frame can result in the loss of potential refunds.
Feeling Overwhelmed?
Filing an Extension
If you miss the tax filing deadline, you can request an extension from the IRS, which extends the due date to October 15th. However, it’s crucial to request this extension before the regular due date to avoid late filing penalties.
What to Do If You Can’t Pay Your Taxes Right Now
If you’re unable to pay your taxes in full, the IRS provides payment options to help you settle your tax deb:
Payment options:
- Full payment
- Short-term payment plan of 180 days or less
- Long-term payment plan with monthly payments
- Installment agreement
As you can see, tax filing is a financial obligation, not an optional request.
If you need legal advice regarding your tax situation, Precision Tax Relief attorney is just a phone call away. Contact us now for a free initial consultation to resolve your emergency.
Frequently Asked Questions
Taxes contribute to government services and infrastructure to improve society’s well-being and economic stability.
Yes, it’s considered tax evasion by the federal government.
Yes, it’s possible to go to jail because not paying taxes is considered a federal crime.
Even if you can’t pay your taxes in full, it’s crucial to file your returns to avoid penalties.
Late filing may result in penalties and interest charges, increasing the amount owed to the IRS.
The IRS may impose penalties, interest, and collection actions to recover unpaid taxes.
Yes, interest accrues on unpaid taxes from the filing deadline.
The IRS may pursue legal action, including tax liens and civil or criminal charges.
The IRS offers payment options, such as installment agreements, for those unable to pay in full.
While you won’t be penalized for not owing taxes, filing is still necessary for certain benefits and to prevent the IRS from filing on your behalf without claiming deductions or credits.
