There are several reasons why people fail to file their taxes. Deaths, illness, divorce, addiction of different sort are few major reasons why people forget to file their taxes. Several individual are unable to withstand the paperwork, or don’t just feel like doing it. It is not possible to identify the numbers of people that avoid tax payment, but according to accountants and tax preparers a lot of people have been found guilty of this offense for many years now, hoping the IRS will not find out.
Though there are possibilities that the IRS won’t notice, at least not immediately. But after a long run the government eventually gets hold of the non-filers. These are things that occur when you don’t file your taxes.
Most time an individual gets a w-2, 1099 or further tax forms, the IRS is given a copy, and their computers assess them to know tax evaders. When you are to get a refund, the IRS no longer cares if you file or not. Though, you will no longer have the right to your refunds after three years. The computer places a color print on all taxpayers when it is seen that they’re in debt, although this can take the organization few years to handle, said by Jonathan Bochese of the Tax Defense Network.
Tax papers and documents which are generated from the sale of a house, a loan, or stock transaction regularly attract the attention of the IRS too.
PERHAPS YOU WILL NOT BE DETAINED
Been detained for tax fraud, which is the way not-filing is been classified by the IRS, is not common, said by Cindy Hockenberry of the National Association of Tax Professionals. Besides you can’t work while you are still in jail, meaning that the IRS can’t get hold of the amount of debt that you owe merely looking at your paycheck.
YOU DO FACE PAPERWORK PROBLEMS
If you are indebted and the IRS agency figures it out, systematically it creates a tax form for each year that you have failed to file. Then your bill will be sent to you. When you do not reply on time, then it starts the procedure of seizing your properties. Perhaps the IRS forms will not contain all the reduction that you are entitled to, meaning that so many people will have to re-file all of the forms which they’ve missed, bringing up several old documents in order to clear their case. Tax problems which are difficult can be resolved in more than a year, said by Jerry Love, an accountant and also a financial planner in Abilene, Tex., this assumes your quick responds to the entire IRS requirement for more details. When you neglect the time limit, you drop your spot in line and have to start from the beginning
YOU WILL BE SURPRISED AT WHAT YOU OWE
Should it be that you owe the government, you will certainly pay it, including additional levies as fines and interests. If you are indebted and fail to file, the IRS agency gives extra charges of close to 25% of your debt, and also an additional 25% for not paying your bills at the appropriate time. 75% is of the extra charges set aside for egregiously fraudulent forms, said by the IRS guidelines. Interests are to be paid also, presently revolving around 3% per year.
THE GOVERNMENT WILL GET PAID EVENTUALLY
Immediately your tax form arrives, there are basically 3 (three) ways of getting the IRS off your trail which are:
•Pay your tax without delay
•Pay your tax via an installment system
•Get the IRS to reduce your bill one way or the other
If you declare bankruptcy, you can wipe out few tax debts (not all), and the IRS plans are constructed to make you pay as much as you can.