The world won’t end if you don’t file tax on schedule, however, there can
be financial issues involved, depending upon your conditions. Read on to
discover what occurs if you don’t document your taxations
There is a contrast between incapability to-file and inability to-pay. What’s
more, it will cost you more in punishments for failure to file.
If you neglect to document your tax return on schedule, the IRS can and
will punish you for a late filing charge. This year the expense is 5% of the
taxes you owe for every month past Tax Day that you fail to file. The
punishment maximizes at 25% of the expenses you owe.
Punishments for neglecting to pay your taxes on time are lower than for
documenting late. For every month past the payment date, you will be
evaluated 0.5% of your total tax bill as a punishment. This expense also
maximizes at 25% of your tax bill. However, interest still accrues on the
unpaid taxes for the punishment for neglecting to pay on time.
Are you facing unpaid taxes? Then understand the collection notices you
- If you were not required to record a return before you didn’t get a penalty for the past 3 years, and
- You filed any necessary returns or recorded an extension for all previous years, and
- You paid or set up an expense plan for any tax due. Also, if you have a payment plan, you should be current.
If you don’t file for over 60 days, the penalty could be twofold your tax bill.
The punishment mixes month to month until you file. If you neglect to pay
your charges and ignore the IRS, the government can begin garnishing
your wages, putting liens on your property, and begin discussing prison
What’s more, that is the thing that occurs if you don’t file your taxes.