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What Happens If You Never File Taxes

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Not filing taxes?

Filing taxes can be an intimidating process, and for some, the idea of not filing them altogether might seem tempting. But what happens if you never file taxes? It is important to remember that failure to file taxes can lead to multiple consequences in the future. It’s not just a matter of avoiding the annual task of filing; it’s about understanding the bigger impact of neglecting your tax responsibilities.

The Effects of Avoiding Tax Filing

Avoiding your annual tax filing might feel like a momentary relief, but the consequences can be severe. 

Here are the possible consequences of not filing taxes:

  1. Accumulating Penalties: The IRS can impose penalties for failing to file taxes and to pay. These penalties can accumulate over time, making your financial situation even worse. Penalties might include late filing fees and interest on unpaid taxes.
    • Failure to pay penalty: If you fail to pay your taxes, a charge of 0.5% of the unpaid amount every month until you pay it. This penalty can go up to a maximum of 25% of what you owe. If you still don’t pay after some time, the IRS might take more serious actions like garnishing your wages or taking money from your bank accounts. In that case, the penalty increases to 1%.
    • Failure to file penalty: If you’re late in filing your tax return, you can be charged a penalty of 5% of the tax you owe for each month it’s late, up to a maximum of 25% of what you owe.
  1. Interest on top of penalties: Failure to file or pay taxes on a timely manner, you’ll not only face penalties but also have to pay interest. The IRS starts adding interest from the day your taxes were due, which is usually the filing deadline.
  2. Missed Refunds: When you don’t file your taxes, you miss out on potential refunds. The government might owe you money, but if you don’t file, you will not be able to get it. This could mean losing out on funds that could improve your financial situation.
  3. Legal Consequences: Failing to file or pay taxes is a serious matter. If you consistently avoid filing your taxes, you could face legal consequences, including fines and even imprisonment in extreme cases. It’s essential to take tax compliance seriously.

The Importance of Tax Compliance

Filing taxes isn’t just about avoiding penalties; it’s also about contributing to society. Taxes fund essential services like healthcare, education, infrastructure, and social programs. When you file your taxes, you play a vital role in supporting your community and your country.

Conclusion

Avoiding tax filing can lead to accumulating penalties, interest on top of penalties, missed refunds,  and legal consequences. It’s essential to prioritize tax compliance for the betterment of your financial future and to support your community.

When you’re facing the daunting task of addressing unfiled taxes, Priority Tax Relief is your trusted partner. We offer expertise, stress reduction, legal compliance, and penalty reduction services to help you regain control of your financial situation.

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FAQs

 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.

 

Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

Need expert help? Looking to get back on track?