What Happens if You Don’t Pay Your Taxes? 3 Things You Need to Know
It’s no secret that tax season can be extremely stressful for individual taxpayers, small businesses, and corporations alike, but is paying taxes really necessary? What happens if you choose not to pay your taxes? This article shows you what you need to know.
Few things are as stressful as paying taxes. Each year, adults across the country rush to gather important tax documents, receipts, and information they need to file their taxes. Sometimes, however, someone may decide not to pay their tax bill. This can be for a variety of reasons. Maybe you feel like the tax rate is too high or that you own an unfair amount. Maybe you simply can’t pay it at this time. Perhaps you got busy and simply forgot to file your taxes. No matter what the reason might be for delaying filing, it’s important to understand exactly what can happen if you do not pay your taxes.
1. Paying late is not the same thing as not paying
Keep in mind that in the eyes of the government, paying your taxes late is not the same as not paying. If you file your taxes but do not pay them immediately, you will be fined and charged interest on the amount due. Similarly, if you do not file your taxes at all, you will be fined and charged interest; however, the rate you are charged will be much higher than if you had filed your tax paperwork on time. In some cases, you may not actually owe the government anything; however, you should still file your taxes in case you are due to receive a refund. You have three years to file a tax return to request a refund. After all, your funds will be forfeited.
2. The fees can be incredible
It’s important to understand that the fees for failing to pay your taxes can be quite high. More importantly, they can quickly accumulate. Instead of simply opting to not pay your taxes, consider filing your taxes and then working out an agreement with the IRS to pay what you owe. You may be able to pay a monthly portion of the owed amount until your tax debt is settled. Another option is to consider an Offer in Compromise. This enables you to settle your debt for a lower amount than you originally owed.
3. An attorney can help
If you’re worried about paying your taxes this year, it’s time to speak with a tax attorney who can help. A tax lawyer can explain your options to you and help you understand what your choices are moving forward. Your attorney can answer your questions about tax penalties and discuss payment plans and options with you.
If you’re struggling with an incredible tax bill and you aren’t sure what your options are for moving forward, it’s time to seek the legal assistance of a tax attorney who can help. Your tax layer will be able to explain your options to you and help you make the best financial choices for your future.