Robert J. Fedor, Esq., L.L.C.

Taxpayers advised to file returns on time

No one likes having to file or pay taxes, yet failing to do so can have many negative consequences. The April 15 IRS tax deadline is quickly approaching, which means individuals and small business owners only have roughly one-and-a-half weeks to gather necessary financial records to complete and file taxes. So what happens if an individual isn’t able to meet the April 15 deadline? While the IRS often accepts formal requests for an extension, it does not treat those who simply fail to file kindly.

While it seems amazing that the IRS is able to discover and keep track of the financial incidentals of every U.S. citizen, it can and does. Those who fail to file their taxes on time therefore, should be assured that the IRS knows and won't forget. What's more, failing to file or pay one's taxes often leads to fines, penalties and even criminal charges related to tax crimes such as tax evasion.

When it comes to the IRS, avoidance isn't an effective way of dealing with tax debt. Therefore, even in cases where an individual filer isn't able to pay the tax amount owed, it's best to still file a tax return on time. The penalties associated with a late filing are much more than for those exacted against tax payers who are late in paying taxes.

Once the IRS learns a taxpayer failed to file on time, the taxpayer is informed via written communication that he or she must do so. In cases where an individual ignores the IRS's requests, a substitute for return may be issued. Factoring penalties and an individual's income, the IRS will calculate what it believes an individual owes and issue a bill. Failing to pay this amount or file a more accurate tax return will likely result in a personal visit from an IRS employee.

The IRS has a far reach and long memory. Individuals who fail to pay tax debt or attempt to evade taxes may be subject to hefty penalties and fines. In some cases, the IRS may also choose to pursue legal action.

Source: U.S. News & World Report, "5 Scary Consequences of Failing to File Your Taxes," Jennifer Calonia, April 3, 2014

No Comments

Leave a comment
Comment Information