By 
If you’re one of the many people who haven’t filed a Tax Relief Professional, there are a few things you should know. For one, it’s not as simple as just forgetting to file. There are actually a few different reasons why someone might not file their taxes, and each has its own set of repercussions. Here are some of the most common reasons for not filing a tax return:
You didn’t make enough money: If your total income for the year was below the filing threshold (which is $12,200 for single filers and $24,400 for married couples filing jointly in 2020), then you’re not required to file a tax return. However, even if you don’t make enough money to be required to file, it might still be beneficial for you to do so. That’s because if you have any deductions or credits that would lower your tax bill, you can only take advantage of them if you actually file a return.
You had an emergency: Sometimes life gets in the way of our best-laid plans. If you had an emergency that prevented you from filing your taxes on time, don’t worry – the IRS typically grants extensions in these situations.
What Can Happen if You Don’t File Your Taxes?
If you don’t file your taxes, the IRS can take a number of actions against you. They can start with charging you penalties for not filing, and not paying, your taxes. The penalty for not filing your taxes is usually 5% of the unpaid tax amount per month, up to a maximum of 25%. The penalty for not paying your taxes is 0.5% of the unpaid tax amount per month, up to a maximum of 25%.
The IRS can also file a Notice of Federal Tax Lien, which is a public record that alerts creditors that the IRS has a claim against your property. This can make it difficult to get loans or lines of credit.
The IRS can also issue a levy against your bank account or wage garnishments, which means they will take money out of your paycheck to pay towards your tax debt.
If you are facing any of these actions from the IRS, it’s important to seek professional help from a tax relief company. They can help you negotiate with the IRS and come up with a plan to pay off your tax debt.
Comments