3 Consequences Of Not Filing Tax Returns

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There is a reason why it is often said that you should file your taxes every year even if you are not in a condition to pay for them in full. Avoiding your annual tax return obligations can lead to various consequences that extend beyond your bank account. If you don’t know how to file unfiled tax returns, get in touch with a tax advocate.  Here are some of the consequences of not filing tax-
  • Late penalties 
In case you are expecting an income tax refund, chances are that you won't get the same level of scolding from the IRS than others who owe money. However, if you fall among those who owe the government money, it is time for you to shake a leg and get your tax return in as soon as possible. The penalty for filing late takes effect immediately following the deadline and typically equal 5% of the unpaid taxes you owe for every single month you delay filing your return, up to a 25%.
  • Forfeiture of tax refund

Because you don't owe the IRS money, it doesn't mean you can keep your refund on hold forever. When you're owed a reimbursement from Uncle Sam, it’s in no rush to pay you back. In fact, the government will give you 3 long years after the tax year for which you filed to claim your back tax refund.
  • Arrest

This is the last thing any person would want-getting arrested for not paying tax. An IRS bill can be a lot more dire than warning letters. If you are not filing returns even after being sent multiple correspondences regarding an unpaid tax bill, the IRS may send a representative to your residence or office to seize your assets or even arrest you.

To avoid the above-mentioned consequences, make sure that your file your tax on time. For help on unfiled tax returns, get in touch with a professional.

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