There are many reasons people do not file their tax returns. Whether you have not filed for one year or for many, the worst thing you can do is ignore the problem.
Take steps to resolve your unfiled tax returns today.
Reasons to file your taxes
If you do not file your taxes on time you may face several consequences:
- Failure-to-file penalty
- Interest charges on unpaid tax bills
- Loss of refund
You may be able to avoid these consequences by taking action. The longer you wait to file, the more interest and penalties may accrue on your account. Even if you are unable to pay the taxes you owe, filing your returns may help you avoid penalties for failing to file. Additionally, if the IRS owes you a refund, you could lose it if you wait too long to file.
Steps to take
File your tax return or returns as soon as possible. The Internal Revenue Service provides tools on its website to assist you, but you may also benefit from talking to a tax or legal professional. If you owe money, but can not pay it, you may be able to negotiate a payment agreement or settlement with the IRS.
Even making a partial payment can save you money on interest fees. Consider your financing options. The interest you must pay on a credit card or loan may be lower than the cost of the interest fees and late payment penalties on your unpaid tax bill.
Even if you have avoided the IRS for years, you are unlikely to escape the consequences forever. Dealing with your unfiled taxes now can save you bigger problems down the road.