If you forget to file your taxes you are testing the IRS in a big way. And guess what? They are not going to lose. It is a big mistake to go even one year without filing your tax return. This may not sound like a big deal, but it really is. The IRS will not take kindly, and you could find yourself in a lot of trouble. One important thing to realize is that an unfiled tax return is a big deal to the IRS but filing a tax return and not being able to pay is not. Most people avoid filing because they can t pay and this is the wrong choice to make.
The biggest consequence of having unfiled IRS tax returns is that you can be sent to prison. No matter who you are, that is something you definitely want to avoid. The IRS will not prosecute you if you come forward first to file back taxes. But if they have to hunt you down this is a different story entirely.
In addition to prison time, the IRS has the right to fine you up to $10k for every year that you did not file a return. Do you have this kind of money? Remember, these fines are on top of what you already owe. As you can see, your liability is growing and growing the longer you wait to file back taxes.
Don’t forget about penalties and interest. When you don’t file back taxes you are adding to your debt. In time this will increase the total amount that you owe the IRS.
Did you know that the IRS can file a substitute tax return if you decide that you are not going to comply? This may sound like a good thing, but it really is not. They use one form for all years and don’t take into consideration any exemptions or deductions. As you can imagine, this will greatly increase your total tax liability.
Many people choose to not file returns simply because they know they will not be able to pay the taxes owed with that return. This is a big mistake. Did you know that the penalties on unfiled returns are actually much harsher than just not paying your taxes? Every month that passes with an unfiled return penalties add up much quicker than they would if you filed and didn t pay. The IRS even offers many different payment options to those individuals that cannot pay. If you file your taxes and then setup a payment plan or settle in some other way you will actually be considered in good standing with the IRS and you will not get charged any more penalties on the outstanding taxes owed as long as you can make your monthly payments.
If you have unfiled tax returns there are many consequences that you will face; none of which you want to deal with. If you don t want to learn how to deal with filing yourself, reach out to trusted tax firm that provide help with unfiled irs taxes.
Author Resource:
Find more information on unfiled returns or get help from tax professionals that can help eliminate your penalties and IRS consequences: http://www.backtaxeshelp.com
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")