What would happen if you don’t file your taxes next year?
No one likes the hassle involved in doing their taxes which is the reason so many people procrastinate when it comes to preparing and filing them. Perhaps, carving time out of your schedule to find and organize the bank statements, receipts, W-2 forms, and other documentation needed to complete the tax forms isn’t such an easy thing to do. In short, it never seems like the right time to do your taxes.
What happens if the end of tax season rolls around, and you’ve missed the April 15th deadline or, for this tax year, the May 17th deadline? What if you just didn’t file your taxes? After all, there are people who don’t file, especially if they owe money to the IRS. And, in some instances, there are people who put off filing their tax return year after year, and the IRS seems to be none the wiser.
The truth of the matter is that filing late or filing for an extension is going to be a better option for you than never filing at all because, best case scenario, you’re missing out on a refund. Worst case scenario? You’re looking at what could be a long, drawn-out battle with the IRS.
It’s a bad idea. Here’s why…
What happens if you decide not to file taxes next year? If you don’t file your taxes with the IRS by the deadline, you will end up paying more money in the long run due to the interest that will accumulate on any money owed as well as several penalties. There is no statute of limitations for assessing and collecting taxes if you haven’t filed a return
Once it’s determined that you needed to file a return, but did not, you’ll be contacted by the IRS via a notification letter, stating the fact that you will be penalized for not filing. If you don’t reply, your bank may send notice of your money being seized by the IRS. The IRS can also place a lien on your property and/or garnish your wages. And, to make matters worse, interest and penalties will continue to accrue.
If you’ve ever had trouble paying your bills, you know how stressful that can be. Not filing your tax returns and paying your tax bills can cause you even more stress. You can avoid the added stress and fees that come from filing late or not filing at all by hiring a CPA to prepare and file your tax returns.
Paying taxes the right way
For a stress free tax season, consider GYL CPAs and Advisors, a personal CPA firm. GYL provides a full range of accounting, audit, and tax services for individuals as well as businesses. The professionals at our firm will prepare and file your federal, state, and local tax returns on your behalf, thereby avoiding tax penalties. We will work with you when it comes to reducing your tax burden. If you’re audited by the IRS, state, or local agency, our firm can represent you.