Have you ever wondered what will happen if you forget or simply refuse to file your taxes? The answer to that question is quite simple. Nothing good comes from not filing your taxes.
To state it simply, there’s no hiding from the IRS. Any IRS worker will tell you to pick a payment option, and to honor your agreement terms. The last thing you need is to deal with the hefty fines, mountains of paperwork, and even jail time that can come with not filing your taxes.
Let’s Say You Haven’t Filed Your Taxes At All
If you’ve skipped filing your taxes all together, you’re guaranteed to have to pay a five percent monthly fee on whatever amount you owe. It will max out at 25 percent. Waiting more than 60 days to file can cause you to have to pay a $135 fine or 100 percent of the taxes you currently owe.
Understanding Filing Extensions
If you’ve managed to get an extension and haven’t paid your taxes, that doesn’t mean you have until October 15th to file your taxes. That’s right, you won’t have an extra six months to pay. The IRS will levy a 0,5 percent fee on these unpaid taxes every month until you pay off your balance. At least 3 percent of that interest will be compounded daily. If you file an extension to file and pay at least 90 percent by April 15th, the penalty... ...read full post