1. Avoid
the Worst Penalties
The IRS imposes a much larger penalty for failing to file
than for failing to pay. If you don’t file your return, the penalty can be 5%
of the unpaid tax per month, up to 25%. If you file but can’t pay, the penalty
is only 0.5% per month. Filing on time, even without payment, minimizes the
amount of penalties you’ll face.
2. Keep
Your Options Open
Filing your return allows you to access IRS payment plans
and relief programs. You may qualify for an installment agreement, a short-term
extension, or even a temporary delay in collections if you’re experiencing
financial hardship. None of these options are available if you haven’t filed
your return.
3. Limit
Interest and Additional Charges
Interest and penalties start accruing the day after the tax
deadline. Filing your return and paying as much as you can, even a partial
payment, reduces the overall amount you’ll owe in the long run.
4.
Protect Your Refund and Credits
If you’re owed a refund, you won’t receive it unless you
file. Even if you owe, filing allows you to claim tax credits and deductions
that could lower your balance due.
5. Avoid
Escalating Enforcement
Failing to file can lead to aggressive IRS actions, such as
tax liens, levies, or wage garnishments. Filing your return, even without
payment, shows good faith and can help you avoid the harshest collection
measures.
What to
Do If You Can’t Pay
·
File your
return by the deadline or request an extension.
·
Pay as
much as you can, even if it’s not the full balance.
·
Consult with a tax professional to discuss payment options or relief programs.
·
Don’t
ignore the problem; taking action is always better than doing nothing.
Filing on time, even if you can’t pay, is the smartest step you can take to protect yourself financially and legally.
or Toll Free at 888-8TaxAid (888) 882-9243
No comments:
Post a Comment