Did you fail to file your taxes by the federal deadline? If so, you may be wondering what happens next. It’s important to remember that the IRS takes not filing your tax return seriously. Not filing on time could have serious consequences for you.
What Happens Right Away
If you do not file your taxes by the federal deadline, you may not hear anything from the IRS for a few months and sometimes even longer. This is especially true if you are owed a refund. After three years of not filing, you lose the right to that refund. If, however, you owe money to the IRS, you will hear from them eventually. You will receive a notice of failure to file, the IRS will automatically file your return for you, and an assessment of the taxes you owe, plus penalties, will be sent to you.
What Happens Down the Road
If you don’t respond to or pay the bill the IRS sends, your assets could eventually be seized. The IRS could take money directly from your paycheck or seize other property. The longer you do not pay, the more interest and penalties you will incur.
The truth is that failing to file your taxes typically leads to you owing more money to the IRS. For starters, when the IRS files a return for you, they typically do not know to include all of the deductions you are eligible to claim, so you owe more tax than if you had filed your own return. Add in interest and penalties, and the total bill can skyrocket. To minimize these issues, get in touch with the tax help pros at Taxation Solutions, Inc. right now. We can help you file returns from previous years and work to secure the best possible tax settlement for you!