The deadline to file your taxes has come and gone. Over 130 million people filed their taxes in April, and hopefully you were one of them. If you didn’t file your taxes because you couldn’t afford to, you forgot to file or virtually any other reason, you could be setting yourself up for a lot of fees and penalties from the IRS. Many people react to this by burying their head in the sand and hoping that the IRS will look the other way, but that is a mistake that will cost you. Follow these tips from our DC tax attorney about how to get back on track:
Even if you can’t afford to pay all of what you owe, you should always file a tax return. There is a $195 monthly penalty for every month that you fail to file. At the very least, filing now will help you to save that fee. If you avoid your taxes, you could risk getting 25% more added to your tax bill by the time the IRS catches on.
Pay as much as you can when you finally file your return. In most cases the IRS will send you a bill for the remainder in around 45 days. That will give you time to save money to pay for the rest of what you owe. Another option might be to set up an installment agreement with the IRS.
These are a couple of tips that could end up saving you a lot of money and a huge headache. For more tips on what to do if you fail to file your taxes check back in a couple of weeks for our next blog.