It is very understandable that in a very busy schedule of our lives, we tend to make certain mistakes like forgetting certain things as everybody is so busy and exhausted with the lifestyle. Every time filing taxes cannot be one’s first preference. It doesn’t matter if you are one of them, through Law you can file your taxes and if you see these necessities you should file a tax return. Before going to file a tax return you need to know about your total income and also your age, filing situation, and counts on the income type as well. Learn more about Back Tax Help
Is it possible that I will lose my tax repayment if I don’t file my taxes?
Yes, because it is necessary to file your taxes if not you won’t be receiving any repayment. The worse is that you even lose your opportunity for repayment. And you get 3 years from the filing deadline to assert your tax fund.
Outcomes of not filing taxes.
If you didn’t file taxes or the Internal Revenue Service bound you a repayment the only outcome is that you won’t be receiving your repayment. No matter if you have a legal responsibility over your tax and if you fail to fill it the effects of it are extreme. Here is a summary of what can occur if you haven’t filed your tax or you bound a tax.
Solution for filing taxes late.
The only way to rectify this is by paying penalties and interests, the penalty goes from 5% to 25% of your tax account. You need to file taxes even though you can’t pay. For example, if you are bound to pay $2000 the loss to file penalty is $100 per month and it goes up to $500. The liability for non-payment or delayed taxes is only 0.5% per month. In some cases, if they filed taxes on time but failed to pay then it is ten times less than the loss to file the amount.
What to do to Give money from Unfiled taxes to Back Taxes.
As a consequence of outstanding returns and you aren’t able to pay now, you have some choices. The Internal Revenue Service has given some solutions for taxpayers who don’t have the money for payment, Based on your situation there are a few options which you may choose.
- You can choose a payment plan to complete your monthly payment on back taxes
- Requesting in payment Settlement you can try to decrease your total amount of your tax penalty.
- Half payment plan lessens the proportion and you can easily pay monthly.
- You can choose penalty abatement to delete liabilities from your account.
- By selecting Currently not Collectable, in which the Indian Revenue Services you can stop your collections on your account till your financial crisis is solved.
With these you can pay your back taxes and if you find any difficulties than you can tax expert to help you with this situation.
