Number Eight of the Big Eight Resolution types
No one likes getting behind on their taxes, but it happens to the best of us and here’s why. Sometimes life gets in the way, and we can’t file our taxes on time. If you are in this situation, take action as soon as possible. You may be in “Tax Hell,” Ignoring Past Due Tax Returns. Here’s what you need to know.
The IRS is Not Patient
Know that the IRS is not patient. They expect taxpayers to file their return on time, even if they can’t pay the full amount owed. If you don’t file your return, they will assess a failure-to-file penalty. This penalty is 5% of the unpaid taxes for each month or part of a month that a return is late. The penalty will not exceed 25% of your unpaid taxes. How long does it take for penalties to accrue?
The interest on unpaid taxes accrues daily. The interest rate is currently 4% and is added to your bill from the date your return was due until the date you pay in full. So, if you’re thinking about ignoring your past due tax return, think again. The longer you wait, the more money you’ll owe.
You Could be Charged with a Crime
If you willfully fail to file your tax return, you could be charged with a crime. The punishment for this crime is a fine of up to $25,000 and/or up to one year in jail. Willfully failing to file your tax return means that you willingly chose not to file or made a deliberate attempt to avoid filing. You will not be charged with a crime if you simply forgot or if you couldn’t afford to pay your taxes. Acknowledging that you have tax problems is one way to stay out of trouble and here’s why it’s important.
The IRS Could Seize Your Assets
The IRS could seize your assets in order to satisfy the debt. This includes taking money from your bank account or selling your property (e.g., car, house, jewelry). The agency claims it will do everything it can to work with taxpayers before resorting to asset seizure, but it’s something that could happen if you don’t take action soon. Hiring a professional tax consultant is one way to avoid a financial tragedy.
Importance of Hiring Professionals to Complete or Tax Returns
Get Help
Don’t worry if you are behind on your taxes. You’re not alone. Many people are in the same boat every year. That’s where our team of licensed tax consultants comes in. We help tax payers catch up on past due tax returns and work with the IRS to minimize your penalties if you qualify for reductions. So don’t wait any longer. Give us a call today at (469) 262-6525 or set an appointment by clicking HERE. We’ll get started on getting your taxes caught up right away so you can move forward with peace of mind.