Are you willing to pay more than your taxes to the state government? Well, nobody likes to pay extra for anything. On the contrary, you can not save yourself from paying taxes too. If you avoid it, there are surely severe consequences. If you don’t know what happens if you don’t file taxes, you are at the right place.
Filing taxes is always seen as a secondary duty by every individual. While working and keeping oneself engrossed in other activities, organizing your tax status and filing a return might seem to be a hectic task. You might count yourself among people who are looking just for other reasons for not filing taxes.
We’re halfway through April. If you don’t decide to do it under the deadline, you might have to go through various penalties.
What happens if you don’t file taxes?
As mentioned above, no one wants to pay more than they owe. Instead of dealing with long-term damages, try to get the issues resolved by paying the right amount in the form of taxes.
The consequences related to not paying taxes are severe. You need to understand what steps will be taken by the IRS if you are unable to pay taxes in insufficient time.
It is advised to everyone to file taxes before it gets too late. Otherwise, you will be targeted with the penalties mentioned below.
Impossible to get away without paying tax
There’s no doubt that the population of the United States is growing immensely over the years. It becomes a difficult task for the IRS to keep track of every citizen residing in multiple states of America.
Being a large organization, the IRS has all the information intact. The work procedure might be slow, but you cannot challenge them based on wrong information. A good example of this could be, that every year, every citizen submits a W-2 form to the IRS. In that specific form, wages and salaries are mentioned by everyone. Based on that, the IRS expects you to file taxes.
The IRS keeps the check and balance of your potential investments and bank deposits with the aid of a 1099 form. Through this form, the IRS can figure out the total amount you have received over the years.
It might become a lengthy task for the IRS, but they will conclude after a certain period.
The consequences increase with time
The month of April is the deadline suggested by the IRS, and if you are unable to file tax in the timeframe mentioned by them, you will eventually start receiving calls from the authority.
The IRS has the power to return the file against your name. For example, if your employer mentions your wage or salary in the W-2 form, the IRS can file tax for you as you are avoiding it. Moreover, as you know they are aware of the income you’re generating over the year, if you are intentionally ignoring tax filing, you might end up paying more.
Furthermore, if you are unable to file after several notices, the IRS can freeze your funds until you pay the taxes. The authorities might put several other charges too.
The leverage of getting refunds
Sometimes the labor class is found earning less than the optimum amount of money. In this case, the IRS gives them leverage to not file the tax return.
Earned income tax credit is another route for getting your funds back. However, the IRS suggests even the people living under this category of filing tax as the IRS will be able to maintain records and give them their valuable refunds.
A good option to file now
Sometimes, situations might arise where you are unable to pay taxes due to lack of funds. However, the IRS might impose a late filing penalty on you if you don’t pay your taxes on time.
Moreover, while keeping the difficult circumstances in mind, the IRS provides every individual with a payment installment plan. With this scheme, you have the leverage to pay your tax duties in the timeframe of three years or less.
To acquire this installment plan, it is necessary that you or your spouse are not related to this scheme in the last 5 years in any way possible.
You need to follow the strict guidelines provided by the IRS to avoid any kinds of late penalties and charges. According to the IRS, these taxes are for the betterment of society only.
In case you are unable to pay the taxes in full, you can get the benefit of the installation plan or you can pay as much as you can to lessen your burden for the future.
So, the IRS is helping you to maintain your records, so you should be responsible enough to fulfill your duty, otherwise, the load of penalties against you might grow.
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