Fail to File Your Tax Return? What Happens & What You Can Do

If you did not file your tax return before the April 15th deadline, you should check whether you are required to file or not. If you are required to file, then missing the deadline could mean that you owe taxes. The IRS begins to charge penalties and interest on the unpaid taxes the day after the filing deadline.

Every month that goes by, penalties are charged and interest is added to the unpaid taxes. The IRS begins collection efforts by sending notices, informing you about the amount of taxes owed and how they must be paid.

If you filed for an extension to file, you still need to pay your tax bill before the April 15th deadline. Filing for an extension only means that you get more time to file, not to pay. Therefore, even after getting an extension, you must pay your tax bill as soon as possible because the IRS will charge penalties and interest on the taxes due to be paid.

If you failed to file, you should file as soon as possible and either pay the entire amount of taxes owed or apply for an IRS payment plan if you cannot pay the entire tax bill with a single payment. Using the help of a tax service is preferable if you cannot pay the entire amount of tax debt and require tax debt reduction or postponement in the payment of tax debt. There may be a possibility of getting a more beneficial resolution that may include reduction in penalties and/or reduction in a reduction in tax debt.

It is best to file and pay your tax bill at the earliest opportunity if you haven’t yet paid your taxes or filed your tax return. Ignoring IRS notices leads to tax lien and tax levy, which may involve the seizing and/or selling of the property/assets to fulfill the tax debt. Therefore, resolving your tax debt early is the best choice.

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