So You Didn't File ...
Once the regular tax filing season passes, we here take a deep breath of relief as the deadline pressure eases and a much is taken off our plates. This is not the case for everyone, though, as those who did not file can feel the pressure and worry of what happens now since they did not.
Well let’s start off with really good news – if you are owed a refund, there generally will be no penalty for not having filed on time. For people in that situation, the IRS is largely happy if you don’t file, for then it doesn’t have to send you that refund money. So, if you think you may be getting a refund and you just didn’t file, you should, for that money can still be yours.
Of course, most who do not file their taxes on time are not in this position. A lot of people who do not file neglect to do so because they fear they will be unable to pay what they owe at the end of the process. First, know that if you are in this situation, you are only setting things up to snowball. You will face penalties for not filing, interest for not paying on time, and once you ignore this once, it becomes easier to push it off in future tax years – further snowballing the penalties, interest, and total you owe to the IRS.
Not filing your taxes is likely not going to help you avoid the bill, either. If you owe taxes, it’s because you did not pay what you owe on money you received – and all those forms you got that say you received this money, the IRS has those, too. Failing to file is not going to keep those powers-that-be from knowing that you should have done so and what you should have paid.
In fact, without filing you are only going to owe more in taxes because the IRS may know of all the money you received, but it will not know about all the deductions for which you could be eligible to lower your burden.
Beyond that, there may be payment options that you are unaware of that will enhance your ability to pay beyond what you think it is. We cannot guarantee some wonderful solution to whatever issue you are fearing, but we can guarantee more concrete numbers and possible solutions.
If you are reading this after having not filed your taxes, not filed an extension, hiding, and just hoping that this doesn’t come back and bite you in the future, well, we can’t make you act differently. But we can offer the opportunity for more clarity and help you get a better grip on where you really do stand. So please reach out if you would like to gain this.
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To ensure we don't make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
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