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Tag Archive for Failing To File Tax Returns

What Happens If I Don’t File My Tax Returns?

The law obligates every citizen to pay taxes to the IRS if their income satisfies a certain threshold. Only dependents are exempted from this rule. Similar to any other rule, filing tax returns is mandatory; there are no other ways about it. Failure to file tax returns at the stipulated time often has dire consequences, mainly criminal penalties such as fines, lines and in some cases, incarceration.

Nowadays, the IRS adopts a welcoming approach, a factor that significantly encourages individuals to file their returns. Furthermore, from an economic perspective, failure to file your tax returns in time is substantially expensive in the long term as compared to filing and paying the owed amounts.

As mentioned earlier, the implications of failing to file your tax returns transcend beyond hefty fees, regardless of whether the action was intentional or unavoidable. The ramifications of tax evasion and fraud are several, but the following are the most prevalent.

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When Fear of Filing Leads To Years of Failing To File Tax Returns

Have you ever heard the expression, “What you focus on expands”? I invite you to consider this idea for a moment as I discuss what gets so many people in trouble with the IRS.

Most of the time it starts out innocently enough. You prepare your tax returns and much to your surprise you owe the IRS a sum of money you simply do not have. It could be $1000, $2000, $10,000. It could be more or it could be less. Let’s just agree that whatever the amount it seems impossible for you to be able to pay all at once. So, what do you do? You decide not to file your taxes.

The next year, the same thing happens, and again you are afraid to file because now you owe more. You fear the IRS will demand payment in full.  Each successive year, the fear Read more

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