Consequences of Not Filing Tax Returns

Any person who lives in the US and who have aLet's check what the consequences are, if you do
steady income is required to file their income taxnot file your return on time.
returns with the Internal Revenue Service before• First for every late return, penalties will be
the 15th of April every year. Tax returns are theimposed. So it is better that you file all your back
forms in which details of the income tax are filed.taxes to avoid penalty. If you are not able to pay
The returns have to be filed for all types ofthe whole arrears in a single payment, you could
income; be it business income or individual income,negotiate for tax relief.
be it wages, dividends or any other type of• If they are not filed, IRS prepares a
income. Not filing the tax returns is a criminalsubstitute return which won't have the standard
offense and is punishable.deductions you are entitled to. Penalties and
There is an income limit beyond which you areinterests are added to this income which they
required to pay the tax. The tax rate for eachderived, and you will be asked to pay the amount.
income group is different. The higher the income,• If you fail to pay the amount assessed by
the greater is the tax rate. People beyondIRS, they might resort to acts like placing lien on
poverty level are not required to file any returns.your property, taking hold of your bank account
Children under the age of 14 and the elderly haveand garnishing your wages. You will not be given
different criteria for filing returns on the incomeany allowances in your future taxes also. IRS can
from investments. If you are married then a jointcharge you for evading tax which is a criminal
return has to be filed.offense and you might end up in jail.
Many people don't file their tax returns if theySo it is necessary that you file them even if you
don't have the money to pay the taxes. This is acan't pay the amount. Then with the help of an
bad move. Even if you are not able to pay theexperienced IRS Tax Relief Lawyer, you could
tax, the returns have to be filed.negotiate for tax relief.