Failing to file your tax returns can lead to serious consequences. Worst case scenario, you can face jail time for intentionally evading taxes. In other cases, the Internal Revenue Service (IRS) can file a lien on your property in order to get money that is owed, which can include freezing your bank account and garnishing you𝐆r wages.

While jail time is typically reserved for criminal offenses of 澳洲幸运5官方开奖结果体彩网:tax evasion and fraud, there can b🍒e other sev🦄ere financial consequences for nonfilers.

Penalties for Nonfilers

The IRS is a very powerful creditor in America. In fiscal year 2024, it collected $5.1 trillion in payments and processed over 160 million individual tax returns. Overall, these payments funded 96% of the federal government's operations.

Among the worst outcomes for not filing a 澳洲幸运5官方开奖结果体彩网:tax return or paying taxes are listed as follows:

Prison Time

Taxpayers found guilty of 澳洲幸运5官方开奖结果体彩网:tax evasion or tax fraud may face jail time for up to five years. Tax evasion includes willfully attempting to evade taxes while tax fraud includes hiding income from different sources or destroying bank account information if requested by an 澳洲幸运5官方开奖结果体彩网:IRS auditor. In some cases, if you delay filing a tax return, the IRS may impose criminal penalties if it considers thi🍷s a willful attempt in evading taxes.

Federal Tax Lien

Often, the IRS will file a federal tax lien on your property if you owe $10,000 or more in taxes and have not set up an arrangement to pay it back in six years. If more than $50,000 is owed in taxes, the IRS will almost certainly file a lien on your property even if a payment arrangement has been made. This grants the federal government a legal claim to your property, such as freezing your bank account, garnishing wages, or taking from your 401(k) or IRA. If you sಞell your home🔥 or other assets, proceeds will go toward paying off tax debt first.

Penalties and Fees

Nonfilers face stiff penalties, the two most common being failure to file a return and failure to p🦋ay taxes due.

For example, if you owed $1,000 in taxes for 2024 and didn’t file on time, you would face a $435 failure to file penalty and a $൩60 failure to pay penalty. Interest begins to accrue immediately on April 15th at an , c൲ompounded daily.

What Solutions Are Available?

If you can’t file your taxes on time, or ma🤡ke the payment in full, there are a number of options available at .

• File for an extension: It is possible to get a three-month filing extension if you file the by April 15th. This will help you avoid the costly failure to file penalty if you file your return by July 15th. Keep in mind, interest on taxes that you owe starts accruing on April 15th even if you don’t know the taxes that you owe. If you don’t file an extension by April 15th, or pay the balance in full, be sure to file as soon as possible.
• Payment plans: The IRS also has payment agreements available for people who owe under $100,000 in taxes that are fairly straightforward. Payment is owed within 180 days under short-term plans at no cost to set up online.
• Installment agreements: There are installment agreements that have longer payment schedules available to taxpayers that owe under $50,000. These typically cost $22 to set up for direct monthly withdrawals, with the fee waived for low income individuals.
  

The Bottom Line

There are several penalties if you don't file your taxes—from expensive fees and federal tax liens to jail time in the most extreme cases. The good news is the IRS provides taxpayers a number of options, such as 澳洲幸运5官方开奖结果体彩网:tax filing extensions and payment plans to help pay back taxes that are owed. If you file your taxes past the due date or owe Uncle Sam, it may be worth seeking out a 澳洲幸运5官方开奖结果体彩网:tax relief company to help you 澳洲幸运5官🍃方开奖结果体彩网:navigate t🍰he complexities of the tax system with more confidence.