The Importance of Filing a Past Due Tax Return
While we are all guilty of missing a deadline here or there, when it comes to filing your taxes, that is one date you want to be sure you mark on your calendar and see to it you meet it on time. And even if you fail to do so, while it may appear that the IRS has simply overlooked your neglect, you can be sure they soon will take notice and over time, you will be faced with severe penalties and/or fines. The truth is, IRS possesses skilled investigators who work daily to identify those who fail to comply with the laws set forth, and eventually they do catch up with those who are guilty of avoiding filing and paying their taxes.
Tax lawyers in South Carolina warn you of some of the penalties you may face when dealing with the IRS, which could ultimately increase your payout amount, and can even affect you long term by losing benefits you would generally have access to had you filed your taxes routinely each and every year.
In the event you have found yourself in a financial crisis and are unable to pay what you owe to the IRS, the simple action of having your return completed is extremely important. Just keep in mind that the sooner you pay, the less fees and interest that will be accumulated and tacked on to the balance currently owed. Tax attorneys in South Carolina share with you below some of the struggles one may face listed on irs.govirs.gov when they fail to file their income taxes.
- Refunds- As some receive them, others aren’t so lucky to actually collect a check back from Uncle Sam. However, for those who fail to comply with the laws and file their taxes risk losing their refund in the event they are actually due one.
- Social Security Benefits- For those who are self-employed, it can be assumed that completing your tax return can become quite tedious. However, if you fail to file, “any self-employment income you earned will not be reported to the Social Security Administration,” hence, your earnings will not be credited toward your retirement.
- Obtaining Loans– South Carolina tax fraud lawyers note that in the event you’re looking to take out a loan for let’s say a mortgage or to open up a business, you are generally going to be required to submit a copy of your previously filed tax returns. Without following through with that, you risk not receiving the extra financial assistance or approval for a home.
Should you find yourself in an unfortunate situation where you simply cannot pay, the IRS allows you the option of paying your owed amount up to 120 days after the deadline, and can be done using their Online Payment Agreement application.
Remember, the IRS has minimal restrictions in how they can go about obtaining the money owed to them, therefore in the event you currently have a dispute against the agency, speak with a reputable tax fraud legal representative today to ensure the route you want to take to handle your situation is the most suitable for your case.